SB 861: National Mortgage Settlement Fund: allocations.
- Session Year: 2017-2018
- House: Senate
- Latest Version Date: 2018-09-10
Existing law creates the National Mortgage Special Deposit Fund, the moneys in which are continuously appropriated and to be allocated by the Department of Finance. Existing law authorizes the Director of Finance to allocate or otherwise use the funds in the National Mortgage Special Deposit Fund to offset General Fund expenditures in the 201112, 201213, and 201314 fiscal years.
This bill would provide legislative confirmation and ratification that allocations of funds from the National Mortgage Special Deposit Fund in the 201112, 201213, and 201314 fiscal years were consistent with the direction given to the Director of Finance, as specified. The bill would also confirm and ratify that, because those allocations were displayed in the Governors proposed budget for the 201213 and 201314 fiscal years, and left unchanged in the budget acts adopted for the 201213 and 201314 fiscal years, the Legislature was aware of, and approved, the allocation and expenditure of funds from the National Mortgage Special Deposit Fund to offset General Fund expenditures in those fiscal years. The bill would make related declarations and a statement of legislative intent.
This bill would appropriate $25,000 from the General Fund to the Department of Finance for legal fees and costs.
This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
Existing law creates the National Mortgage Special Deposit Fund, the moneys in which are continuously appropriated and to be allocated by the Department of Finance. Existing law authorizes the Director of Finance to allocate or otherwise use the funds in the National Mortgage Special Deposit Fund to offset General Fund expenditures in the 201112, 201213, and 201314 fiscal years.
This bill would provide legislative confirmation and ratification that allocations of funds from the National Mortgage Special Deposit Fund in the 201112, 201213, and 201314 fiscal years were consistent with the direction given to the Director of Finance, as specified. The bill would also confirm and ratify that, because those allocations were displayed in the Governors proposed budget for the 201213 and 201314 fiscal years, and left unchanged in the budget acts adopted for the 201213 and 201314 fiscal years, the Legislature was aware of, and approved, the allocation and expenditure of funds from the National Mortgage Special Deposit Fund to offset General Fund expenditures in those fiscal years. The bill would make related declarations and a statement of legislative intent.
This bill would appropriate $25,000 from the General Fund to the Department of Finance for legal fees and costs.
This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
Existing law creates the National Mortgage Special Deposit Fund, the moneys in which are continuously appropriated and to be allocated by the Department of Finance. Existing law authorizes the Director of Finance to allocate or otherwise use the funds in the National Mortgage Special Deposit Fund to offset General Fund expenditures in the 201112, 201213, and 201314 fiscal years.
This bill would provide legislative confirmation and ratification that allocations of funds from the National Mortgage Special Deposit Fund in the 201112, 201213, and 201314 fiscal years were consistent with the direction given to the Director of Finance, as specified. The bill would also confirm and ratify that, because those allocations were displayed in the Governors proposed budget for the 201213 and 201314 fiscal years, and left unchanged in the budget acts adopted for the 201213 and 201314 fiscal years, the Legislature was aware of, and approved, the allocation and expenditure of funds from the National Mortgage Special Deposit Fund to offset General Fund expenditures in those fiscal years. The bill would make related declarations and a statement of legislative intent.
This bill would appropriate $25,000 from the General Fund to the Department of Finance for legal fees and costs.
This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
(1)The Mental Health Services Act (MHSA), an initiative measure enacted by the voters as Proposition 63 at the November 2, 2004, statewide general election, imposes a 1% tax on that portion of a taxpayers taxable income that exceeds $1,000,000 and requires that the revenue from that tax be deposited in the Mental Health Services Fund to fund various county mental health programs.Existing law, known as the No Place Like Home Program, requires the Department of Housing and Community Development to award $2,000,000,000 among counties to finance capital costs, including, but not limited to, acquisition, design, construction, rehabilitation, or preservation, and to capitalize operating reserves, of permanent supportive housing for the target population, as specified. Existing law establishes the No Place Like Home Fund, requires specified moneys to be deposited in the fund, and continuously appropriates moneys in the fund for these purposes. Existing law authorizes the California Health Facilities Financing Authority and the department to enter into service contracts pursuant to the program related to permanent supportive housing, and further authorizes the authority to issue taxable or tax-exempt revenue bonds in an amount not to exceed $2,000,000,000 and to make secured or unsecured loans to the department in connection with financing permanent supportive housing pursuant to the department. Existing law establishes and continuously appropriates the Supportive Housing Program Subaccount in the Mental Health Services Fund and requires the Controller to transfer from that fund to the subaccount an amount necessary to cover the costs the authority is required to pay to the department pursuant to a service contract with the department, as provided. This bill would enact the No Place Like Home Act of 2018 and provide for submission of that act to the voters at the November 6, 2018, statewide general election. The bill would specify that the service contracts between the authority and the department may be single-year or multiyear contracts and provide for payments to the department from amounts on deposit in the Supportive Housing Program Subaccount. The bill would include any appropriation or transfer to the No Place Like Home Fund from the General Fund or other funds as moneys required to be paid into the No Place Like Home Fund. The bill would declare that the voters ratify as being consistent with and in furtherance of the MHSA, and approve for purposes of specified provisions of the California Constitution relating to debt, specified statutes related to the No Place Like Home Program and related financial provisions. The bill would also authorize the Legislature to appropriate for transfer moneys in the Mental Health Services Fund to the Supportive Housing Program Subaccount, subject to specified conditions, and continuously appropriate those moneys for further transfer to the No Place Like Home Fund to be used for purposes of the No Place Like Home Program. The bill would provide that any amount appropriated and deposited in the No Place Like Home Fund pursuant to these provisions would reduce the amount of authorized but unissued bonds that the California Health Facilities Financing Authority may issue, as described above, by a corresponding amount. The bill would authorize the Legislature to amend the No Place Like Home Act of 2018 by a majority vote.(2)Existing law contains provisions related to elections and voting, including a requirement that a measure submitted to the people by the Legislature appear on the ballot of the first statewide election occurring at least 131 days after the adoption of the proposal by the Legislature and that the Secretary of State mail state voter information guides to voters.This bill would require the Secretary of State, notwithstanding specified provisions of existing law relating to elections and voting, to submit the No Place Like Home Act of 2018 to the voters for their approval at the November 6, 2018, statewide general election. (3)This bill would declare that it is to take effect immediately as an urgency statute.(1)The Mental Health Services Act (MHSA), an initiative measure enacted by the voters as Proposition 63 at the November 2, 2004, statewide general election, imposes a 1% tax on that portion of a taxpayers taxable income that exceeds $1,000,000 and requires that the revenue from that tax be deposited in the Mental Health Services Fund to fund various county mental health programs.
Existing law, known as the No Place Like Home Program, requires the Department of Housing and Community Development to award $2,000,000,000 among counties to finance capital costs, including, but not limited to, acquisition, design, construction, rehabilitation, or preservation, and to capitalize operating reserves, of permanent supportive housing for the target population, as specified. Existing law establishes the No Place Like Home Fund, requires specified moneys to be deposited in the fund, and continuously appropriates moneys in the fund for these purposes. Existing law authorizes the California Health Facilities Financing Authority and the department to enter into service contracts pursuant to the program related to permanent supportive housing, and further authorizes the authority to issue taxable or tax-exempt revenue bonds in an amount not to exceed $2,000,000,000 and to make secured or unsecured loans to the department in connection with financing permanent supportive housing pursuant to the department. Existing law establishes and continuously appropriates the Supportive Housing Program Subaccount in the Mental Health Services Fund and requires the Controller to transfer from that fund to the subaccount an amount necessary to cover the costs the authority is required to pay to the department pursuant to a service contract with the department, as provided.
This bill would enact the No Place Like Home Act of 2018 and provide for submission of that act to the voters at the November 6, 2018, statewide general election. The bill would specify that the service contracts between the authority and the department may be single-year or multiyear contracts and provide for payments to the department from amounts on deposit in the Supportive Housing Program Subaccount. The bill would include any appropriation or transfer to the No Place Like Home Fund from the General Fund or other funds as moneys required to be paid into the No Place Like Home Fund. The bill would declare that the voters ratify as being consistent with and in furtherance of the MHSA, and approve for purposes of specified provisions of the California Constitution relating to debt, specified statutes related to the No Place Like Home Program and related financial provisions. The bill would also authorize the Legislature to appropriate for transfer moneys in the Mental Health Services Fund to the Supportive Housing Program Subaccount, subject to specified conditions, and continuously appropriate those moneys for further transfer to the No Place Like Home Fund to be used for purposes of the No Place Like Home Program. The bill would provide that any amount appropriated and deposited in the No Place Like Home Fund pursuant to these provisions would reduce the amount of authorized but unissued bonds that the California Health Facilities Financing Authority may issue, as described above, by a corresponding amount. The bill would authorize the Legislature to amend the No Place Like Home Act of 2018 by a majority vote.
(2)Under existing law, the department is responsible for administering various housing and home loan programs throughout the state. Existing law requires the department, on or before January 1, 2019, to establish the Housing for a Healthy California Program to create supportive housing opportunities through grants to counties for capital and operating assistance, as specified, or operating reserve grants and capital loans to developers, or both.Existing law establishes the Housing Rehabilitation Loan Fund, which is continuously appropriated to the department for specified purposes relating to housing programs.This bill would authorize the department to charge a person who receives a loan directly from the department pursuant to the Housing for a Healthy California Program an ongoing monitoring fee to cover the costs of project monitoring. The bill would require all moneys received by the department in repayment of any loans made pursuant to the program to be deposited into the Housing Rehabilitation Loan Fund, and would provide that any money so deposited would be continuously appropriated to the department for purposes of the Multifamily Housing Program. By requiring additional funds to be deposited into a continuously appropriated fund, and expanding the purposes of that fund, this bill would make an appropriation.(3)(2)Existing law contains provisions related to elections and voting, including a requirement that a measure submitted to the people by the Legislature appear on the ballot of the first statewide election occurring at least 131 days after the adoption of the proposal by the Legislature and that the Secretary of State mail state voter information guides to voters.
This bill would require the Secretary of State, notwithstanding specified provisions of existing law relating to elections and voting, to submit the No Place Like Home Act of 2018 to the voters for their approval at the November 6, 2018, statewide general election.
(4)This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.(3)This bill would declare that it is to take effect immediately as an urgency statute.
(1)The Mental Health Services Act (MHSA), an initiative measure enacted by the voters as Proposition 63 at the November 2, 2004, statewide general election, imposes a 1% tax on that portion of a taxpayers taxable income that exceeds $1,000,000 and requires that the revenue from that tax be deposited in the Mental Health Services Fund to fund various county mental health programs.
Existing law, known as the No Place Like Home Program, requires the Department of Housing and Community Development to award $2,000,000,000 among counties to finance capital costs, including, but not limited to, acquisition, design, construction, rehabilitation, or preservation, and to capitalize operating reserves, of permanent supportive housing for the target population, as specified. Existing law establishes the No Place Like Home Fund, requires specified moneys to be deposited in the fund, and continuously appropriates moneys in the fund for these purposes. Existing law authorizes the California Health Facilities Financing Authority and the department to enter into service contracts pursuant to the program related to permanent supportive housing, and further authorizes the authority to issue taxable or tax-exempt revenue bonds in an amount not to exceed $2,000,000,000 and to make secured or unsecured loans to the department in connection with financing permanent supportive housing pursuant to the department. Existing law establishes and continuously appropriates the Supportive Housing Program Subaccount in the Mental Health Services Fund and requires the Controller to transfer from that fund to the subaccount an amount necessary to cover the costs the authority is required to pay to the department pursuant to a service contract with the department, as provided.
This bill would enact the No Place Like Home Act of 2018 and provide for submission of that act to the voters at the November 6, 2018, statewide general election. The bill would specify that the service contracts between the authority and the department may be single-year or multiyear contracts and provide for payments to the department from amounts on deposit in the Supportive Housing Program Subaccount. The bill would include any appropriation or transfer to the No Place Like Home Fund from the General Fund or other funds as moneys required to be paid into the No Place Like Home Fund. The bill would declare that the voters ratify as being consistent with and in furtherance of the MHSA, and approve for purposes of specified provisions of the California Constitution relating to debt, specified statutes related to the No Place Like Home Program and related financial provisions. The bill would also authorize the Legislature to appropriate for transfer moneys in the Mental Health Services Fund to the Supportive Housing Program Subaccount, subject to specified conditions, and continuously appropriate those moneys for further transfer to the No Place Like Home Fund to be used for purposes of the No Place Like Home Program. The bill would provide that any amount appropriated and deposited in the No Place Like Home Fund pursuant to these provisions would reduce the amount of authorized but unissued bonds that the California Health Facilities Financing Authority may issue, as described above, by a corresponding amount. The bill would authorize the Legislature to amend the No Place Like Home Act of 2018 by a majority vote.
(2)Under existing law, the department is responsible for administering various housing and home loan programs throughout the state. Existing law requires the department, on or before January 1, 2019, to establish the Housing for a Healthy California Program to create supportive housing opportunities through grants to counties for capital and operating assistance, as specified, or operating reserve grants and capital loans to developers, or both.
Existing law establishes the Housing Rehabilitation Loan Fund, which is continuously appropriated to the department for specified purposes relating to housing programs.
This bill would authorize the department to charge a person who receives a loan directly from the department pursuant to the Housing for a Healthy California Program an ongoing monitoring fee to cover the costs of project monitoring. The bill would require all moneys received by the department in repayment of any loans made pursuant to the program to be deposited into the Housing Rehabilitation Loan Fund, and would provide that any money so deposited would be continuously appropriated to the department for purposes of the Multifamily Housing Program. By requiring additional funds to be deposited into a continuously appropriated fund, and expanding the purposes of that fund, this bill would make an appropriation.
(3)Existing law contains provisions related to elections and voting, including a requirement that a measure submitted to the people by the Legislature appear on the ballot of the first statewide election occurring at least 131 days after the adoption of the proposal by the Legislature and that the Secretary of State mail state voter information guides to voters.
This bill would require the Secretary of State, notwithstanding specified provisions of existing law relating to elections and voting, to submit the No Place Like Home Act of 2018 to the voters for their approval at the November 6, 2018, statewide general election.
(4)This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2018.This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2018.
The Legislature hereby finds and declares the following:
(a)The state has funded and allocated billions of dollars for affordable housing in the past several years.
(b)The 201819 budget alone includes $5.1 billion in state and federal funds across multiple programs and departments to address housing and homelessness.
(c)The Governor and Legislature developed a legislative package of 15 bills signed in September 2017 that collectively shorten the housing development approval process, provide incentives to streamline development, promote local accountability to adequately plan for needed housing, and invest in affordable housing production. The housing package establishes a $75 document recording fee on real estate transactions, excluding home sales, beginning January 1, 2018, to create a sustainable funding source for state affordable housing programs.
(d)The 2017 legislative package also places a $4 billion bond on the November 2018 ballot, with $3 billion in general obligation bonds for affordable housing, and $1 billion for veterans housing to be supported by participants loan repayments.
(e)To encourage housing development, the Legislature provided local governments with tools to help fulfill their housing priorities and responsibilities, including:
(1)Chapter 386, Statutes of 2013 (SB 743), which provides an alternative approach for CEQA analysis of transportation impacts of transit-oriented development and new exemptions for certain projects.
(2)Chapter 785, Statutes of 2014 (SB 628), which allows cities and counties to create an enhanced infrastructure financing district that utilizes property taxes and other available funding for various types of projects including low and moderate income housing projects.
(3)Chapter 319, Statutes of 2015 (AB 2), which allows specified disadvantaged areas of California to create a community revitalization and investment authority that utilizes property taxes and other available funding for various types of projects, including affordable housing.
(4)Various statutes that reduce minimum parking requirements and expand size and other bonuses for developers that meet affordability requirements.
(5)Chapters 720 and 735, Statutes of 2016 (SB 1069 and AB 2299), which streamline permits and require local ordinances to facilitate the development of these low-cost housing options that provide additional living quarters on single-family lots that are independent of the primary dwelling unit.
(6)Chapter 453, Statutes of 2016 (AB 2031), allows a local government, with an existing successor agency to a former redevelopment agency, to bond against the property tax revenues it receives as a result of redevelopment agency dissolution for the purposes of affordable housing development.
(f)In 2016 the Governor signed into law the No Place Like Home Program, which funds the construction of permanent supportive housing targeted to the chronically homeless and those at risk of chronic homelessness with mental health services needs. The program is funded with a $2 billion bond, secured by Mental Health Services Act (Proposition 63) revenues, and will be on the November 2018 ballot to accelerate the issuance of program funds.
(g)The Veterans Housing and Homeless Prevention Bond Act of 2014 (Proposition 41) repurposed $600 million in bond funds to fund multifamily housing for veterans and their families.
(h)The California Tax Credit Allocation Committee, which administers the low-income housing tax credit program, has made a number of regulatory changes to increase the utilization of this program. Tax credit financing supports nearly all deed-restricted affordable housing in California; improvements to this program benefit low-income families across the state. These efforts resulted in a historic high of 20,847 housing units financed with 4 percent federal tax credits in 2016.
(i)In addition, the California Tax Credit Allocation Committee has worked with the California Debt Limit Allocation Committee to convene a High Cost Task Force to address the growing housing development costs that limit the impact of public investment. As a result, the state has set a high-cost threshold for funded projects, provided incentives for the construction of larger projects with lower costs per unit, and removed state funding requirements that prioritize expensive projects.
(j)The California Housing Financing Agency has increased its multifamily lending activity each year since the Great Recession, providing $369 million in financing in 201617 to support 2,100 affordable housing units. The agency also issued $682 million in private activity bonds for affordable housing since 2015.
(k)The states first-time homebuyers downpayment assistance program has provided $4 billion to moderate-income families that do not qualify for the low-income programs.
SEC. 2.(a)It is the intent of the Legislature in enacting Section 3 of this act to confirm that allocations and uses of funds made by the Director of Finance from the National Mortgage Special Deposit Fund pursuant to Section 12531 of the Government Code in the 201112, 201213, and 201314 fiscal years were consistent with legislative direction and intent and to abrogate the holding of the Court of Appeal in the case of National Asian American Coalition v. Brown, 25 Cal.App.5th 60 (2018). The Legislature further declares that the allocations made by the Director of Finance pursuant to Section 12531 of the Government Code were made for purposes consistent with the National Mortgage Settlement.
(b)It is the intent of the Legislature to explore potential appropriations and other support for housing in the next fiscal year, consistent with the Legislatures recent efforts to fund and support housing.
SEC. 3.Section 12531 of the Government Code is amended to read:12531.(a)The Legislature finds and declares that California, represented by the California Attorney General, entered a national multistate settlement with the countrys five largest loan servicers. This agreement, the National Mortgage Settlement stemmed from successful resolution of federal court action (Consent Judgment, United States v. Bank of America (No. 1:12-cv-00361, Banzr. D.C. Apr. 4, 2012)). The National Mortgage Settlement is broad ranging, with Californias share of this settlement estimated to be up to eighteen billion dollars ($18,000,000,000). Of this amount, approximately four hundred ten million dollars ($410,000,000) will come directly to the state in costs, fees, and penalty payments.
(b)There is hereby created in the State Treasury the National Mortgage Special Deposit Fund. Notwithstanding Section 13340, all moneys in the fund are hereby continuously appropriated, and shall be allocated by the Department of Finance.
(c)Direct payments made to the State of California as civil penalties pursuant to the National Mortgage Settlement shall be deposited in the Unfair Competition Law Fund as required by the settlement.
(d)Direct payments made to the State of California pursuant to the National Mortgage Settlement, except for those payments made pursuant to subdivision (c), shall be deposited in the National Mortgage Special Deposit Fund.
(e)Notwithstanding any other law, the Director of Finance may allocate or otherwise use the funds in the National Mortgage Special Deposit Fund to offset General Fund expenditures in the 201112, 201213, and 201314 fiscal years. The Department of Finance and the Controllers office shall recognize this fiscal alignment accordingly for the purpose of the state budget process and legal basis of accounting.
(f)Not less than 30 days prior to allocating any moneys pursuant to subdivision (e), the Department of Finance shall submit an expenditure plan to the Joint Legislative Budget Committee detailing the proposed use of the moneys in the National Mortgage Special Deposit Fund.
(g)Notwithstanding any other law, the Controller may use the funds in the National Mortgage Special Deposit Fund for cashflow loans to the General Fund as provided in Sections 16310 and 16381.
(h)The Legislature hereby confirms and ratifies that the allocations of funds from the National Mortgage Special Deposit Fund in the 201112, 201213, and 201314 fiscal years were consistent with the direction given to the Director of Finance in subdivision (e) to offset General Fund expenditures in those years. The Legislature further confirms and ratifies that because those allocations were displayed in the Governors proposed budget for the 201213 and 201314 fiscal years, and left unchanged in the budget acts adopted for the 201213 and 201314 fiscal years, the Legislature was aware of, and approved, the allocation and expenditure of funds from the National Mortgage Special Deposit Fund to offset General Fund expenditures in those fiscal years. This subdivision is declaratory of existing law.
SEC. 4.The amount of twenty-five thousand dollars ($25,000) is hereby appropriated from the General Fund to the Department of Finance for legal fees and costs.
SEC. 5.This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
The Legislature hereby finds and declares the following:
(a)The state has funded and allocated billions of dollars for affordable housing in the past several years.
(b)The 201819 budget alone includes $5.1 billion in state and federal funds across multiple programs and departments to address housing and homelessness.
(c)The Governor and Legislature developed a legislative package of 15 bills signed in September 2017 that collectively shorten the housing development approval process, provide incentives to streamline development, promote local accountability to adequately plan for needed housing, and invest in affordable housing production. The housing package establishes a $75 document recording fee on real estate transactions, excluding home sales, beginning January 1, 2018, to create a sustainable funding source for state affordable housing programs.
(d)The 2017 legislative package also places a $4 billion bond on the November 2018 ballot, with $3 billion in general obligation bonds for affordable housing, and $1 billion for veterans housing to be supported by participants loan repayments.
(e)To encourage housing development, the Legislature provided local governments with tools to help fulfill their housing priorities and responsibilities, including:
(1)Chapter 386, Statutes of 2013 (SB 743), which provides an alternative approach for CEQA analysis of transportation impacts of transit-oriented development and new exemptions for certain projects.
(2)Chapter 785, Statutes of 2014 (SB 628), which allows cities and counties to create an enhanced infrastructure financing district that utilizes property taxes and other available funding for various types of projects including low and moderate income housing projects.
(3)Chapter 319, Statutes of 2015 (AB 2), which allows specified disadvantaged areas of California to create a community revitalization and investment authority that utilizes property taxes and other available funding for various types of projects, including affordable housing.
(4)Various statutes that reduce minimum parking requirements and expand size and other bonuses for developers that meet affordability requirements.
(5)Chapters 720 and 735, Statutes of 2016 (SB 1069 and AB 2299), which streamline permits and require local ordinances to facilitate the development of these low-cost housing options that provide additional living quarters on single-family lots that are independent of the primary dwelling unit.
(6)Chapter 453, Statutes of 2016 (AB 2031), allows a local government, with an existing successor agency to a former redevelopment agency, to bond against the property tax revenues it receives as a result of redevelopment agency dissolution for the purposes of affordable housing development.
(f)In 2016 the Governor signed into law the No Place Like Home Program, which funds the construction of permanent supportive housing targeted to the chronically homeless and those at risk of chronic homelessness with mental health services needs. The program is funded with a $2 billion bond, secured by Mental Health Services Act (Proposition 63) revenues, and will be on the November 2018 ballot to accelerate the issuance of program funds.
(g)The Veterans Housing and Homeless Prevention Bond Act of 2014 (Proposition 41) repurposed $600 million in bond funds to fund multifamily housing for veterans and their families.
(h)The California Tax Credit Allocation Committee, which administers the low-income housing tax credit program, has made a number of regulatory changes to increase the utilization of this program. Tax credit financing supports nearly all deed-restricted affordable housing in California; improvements to this program benefit low-income families across the state. These efforts resulted in a historic high of 20,847 housing units financed with 4 percent federal tax credits in 2016.
(i)In addition, the California Tax Credit Allocation Committee has worked with the California Debt Limit Allocation Committee to convene a High Cost Task Force to address the growing housing development costs that limit the impact of public investment. As a result, the state has set a high-cost threshold for funded projects, provided incentives for the construction of larger projects with lower costs per unit, and removed state funding requirements that prioritize expensive projects.
(j)The California Housing Financing Agency has increased its multifamily lending activity each year since the Great Recession, providing $369 million in financing in 201617 to support 2,100 affordable housing units. The agency also issued $682 million in private activity bonds for affordable housing since 2015.
(k)The states first-time homebuyers downpayment assistance program has provided $4 billion to moderate-income families that do not qualify for the low-income programs.
SEC. 2.(a)It is the intent of the Legislature in enacting Section 3 of this act to confirm that allocations and uses of funds made by the Director of Finance from the National Mortgage Special Deposit Fund pursuant to Section 12531 of the Government Code in the 201112, 201213, and 201314 fiscal years were consistent with legislative direction and intent and to abrogate the holding of the Court of Appeal in the case of National Asian American Coalition v. Brown, 25 Cal.App.5th 60 (2018). The Legislature further declares that the allocations made by the Director of Finance pursuant to Section 12531 of the Government Code were made for purposes consistent with the National Mortgage Settlement.
(b)It is the intent of the Legislature to explore potential appropriations and other support for housing in the next fiscal year, consistent with the Legislatures recent efforts to fund and support housing.
SEC. 3.Section 12531 of the Government Code is amended to read:12531.(a)The Legislature finds and declares that California, represented by the California Attorney General, entered a national multistate settlement with the countrys five largest loan servicers. This agreement, the National Mortgage Settlement stemmed from successful resolution of federal court action (Consent Judgment, United States v. Bank of America (No. 1:12-cv-00361, Banzr. D.C. Apr. 4, 2012)). The National Mortgage Settlement is broad ranging, with Californias share of this settlement estimated to be up to eighteen billion dollars ($18,000,000,000). Of this amount, approximately four hundred ten million dollars ($410,000,000) will come directly to the state in costs, fees, and penalty payments.
(b)There is hereby created in the State Treasury the National Mortgage Special Deposit Fund. Notwithstanding Section 13340, all moneys in the fund are hereby continuously appropriated, and shall be allocated by the Department of Finance.
(c)Direct payments made to the State of California as civil penalties pursuant to the National Mortgage Settlement shall be deposited in the Unfair Competition Law Fund as required by the settlement.
(d)Direct payments made to the State of California pursuant to the National Mortgage Settlement, except for those payments made pursuant to subdivision (c), shall be deposited in the National Mortgage Special Deposit Fund.
(e)Notwithstanding any other law, the Director of Finance may allocate or otherwise use the funds in the National Mortgage Special Deposit Fund to offset General Fund expenditures in the 201112, 201213, and 201314 fiscal years. The Department of Finance and the Controllers office shall recognize this fiscal alignment accordingly for the purpose of the state budget process and legal basis of accounting.
(f)Not less than 30 days prior to allocating any moneys pursuant to subdivision (e), the Department of Finance shall submit an expenditure plan to the Joint Legislative Budget Committee detailing the proposed use of the moneys in the National Mortgage Special Deposit Fund.
(g)Notwithstanding any other law, the Controller may use the funds in the National Mortgage Special Deposit Fund for cashflow loans to the General Fund as provided in Sections 16310 and 16381.
(h)The Legislature hereby confirms and ratifies that the allocations of funds from the National Mortgage Special Deposit Fund in the 201112, 201213, and 201314 fiscal years were consistent with the direction given to the Director of Finance in subdivision (e) to offset General Fund expenditures in those years. The Legislature further confirms and ratifies that because those allocations were displayed in the Governors proposed budget for the 201213 and 201314 fiscal years, and left unchanged in the budget acts adopted for the 201213 and 201314 fiscal years, the Legislature was aware of, and approved, the allocation and expenditure of funds from the National Mortgage Special Deposit Fund to offset General Fund expenditures in those fiscal years. This subdivision is declaratory of existing law.
SEC. 4.The amount of twenty-five thousand dollars ($25,000) is hereby appropriated from the General Fund to the Department of Finance for legal fees and costs.
SEC. 5.This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
The Legislature hereby finds and declares the following:
(a)The state has funded and allocated billions of dollars for affordable housing in the past several years.
(b)The 201819 budget alone includes $5.1 billion in state and federal funds across multiple programs and departments to address housing and homelessness.
(c)The Governor and Legislature developed a legislative package of 15 bills signed in September 2017 that collectively shorten the housing development approval process, provide incentives to streamline development, promote local accountability to adequately plan for needed housing, and invest in affordable housing production. The housing package establishes a $75 document recording fee on real estate transactions, excluding home sales, beginning January 1, 2018, to create a sustainable funding source for state affordable housing programs.
(d)The 2017 legislative package also places a $4 billion bond on the November 2018 ballot, with $3 billion in general obligation bonds for affordable housing, and $1 billion for veterans housing to be supported by participants loan repayments.
(e)To encourage housing development, the Legislature provided local governments with tools to help fulfill their housing priorities and responsibilities, including:
(1)Chapter 386, Statutes of 2013 (SB 743), which provides an alternative approach for CEQA analysis of transportation impacts of transit-oriented development and new exemptions for certain projects.
(2)Chapter 785, Statutes of 2014 (SB 628), which allows cities and counties to create an enhanced infrastructure financing district that utilizes property taxes and other available funding for various types of projects including low and moderate income housing projects.
(3)Chapter 319, Statutes of 2015 (AB 2), which allows specified disadvantaged areas of California to create a community revitalization and investment authority that utilizes property taxes and other available funding for various types of projects, including affordable housing.
(4)Various statutes that reduce minimum parking requirements and expand size and other bonuses for developers that meet affordability requirements.
(5)Chapters 720 and 735, Statutes of 2016 (SB 1069 and AB 2299), which streamline permits and require local ordinances to facilitate the development of these low-cost housing options that provide additional living quarters on single-family lots that are independent of the primary dwelling unit.
(6)Chapter 453, Statutes of 2016 (AB 2031), allows a local government, with an existing successor agency to a former redevelopment agency, to bond against the property tax revenues it receives as a result of redevelopment agency dissolution for the purposes of affordable housing development.
(f)In 2016 the Governor signed into law the No Place Like Home Program, which funds the construction of permanent supportive housing targeted to the chronically homeless and those at risk of chronic homelessness with mental health services needs. The program is funded with a $2 billion bond, secured by Mental Health Services Act (Proposition 63) revenues, and will be on the November 2018 ballot to accelerate the issuance of program funds.
(g)The Veterans Housing and Homeless Prevention Bond Act of 2014 (Proposition 41) repurposed $600 million in bond funds to fund multifamily housing for veterans and their families.
(h)The California Tax Credit Allocation Committee, which administers the low-income housing tax credit program, has made a number of regulatory changes to increase the utilization of this program. Tax credit financing supports nearly all deed-restricted affordable housing in California; improvements to this program benefit low-income families across the state. These efforts resulted in a historic high of 20,847 housing units financed with 4 percent federal tax credits in 2016.
(i)In addition, the California Tax Credit Allocation Committee has worked with the California Debt Limit Allocation Committee to convene a High Cost Task Force to address the growing housing development costs that limit the impact of public investment. As a result, the state has set a high-cost threshold for funded projects, provided incentives for the construction of larger projects with lower costs per unit, and removed state funding requirements that prioritize expensive projects.
(j)The California Housing Financing Agency has increased its multifamily lending activity each year since the Great Recession, providing $369 million in financing in 201617 to support 2,100 affordable housing units. The agency also issued $682 million in private activity bonds for affordable housing since 2015.
(k)The states first-time homebuyers downpayment assistance program has provided $4 billion to moderate-income families that do not qualify for the low-income programs.
SEC. 2.(a)It is the intent of the Legislature in enacting Section 3 of this act to confirm that allocations and uses of funds made by the Director of Finance from the National Mortgage Special Deposit Fund pursuant to Section 12531 of the Government Code in the 201112, 201213, and 201314 fiscal years were consistent with legislative direction and intent and to abrogate the holding of the Court of Appeal in the case of National Asian American Coalition v. Brown, 25 Cal.App.5th 60 (2018). The Legislature further declares that the allocations made by the Director of Finance pursuant to Section 12531 of the Government Code were made for purposes consistent with the National Mortgage Settlement.
(b)It is the intent of the Legislature to explore potential appropriations and other support for housing in the next fiscal year, consistent with the Legislatures recent efforts to fund and support housing.
SEC. 3.Section 12531 of the Government Code is amended to read:12531.(a)The Legislature finds and declares that California, represented by the California Attorney General, entered a national multistate settlement with the countrys five largest loan servicers. This agreement, the National Mortgage Settlement stemmed from successful resolution of federal court action (Consent Judgment, United States v. Bank of America (No. 1:12-cv-00361, Banzr. D.C. Apr. 4, 2012). 2012)). The National Mortgage Settlement is broad ranging, with Californias share of this settlement estimated to be up to eighteen billion dollars ($18,000,000,000). Of this amount, approximately four hundred ten million dollars ($410,000,000) will come directly to the state in costs, fees, and penalty payments.
(b)There is hereby created in the State Treasury the National Mortgage Special Deposit Fund. Notwithstanding Section 13340, all moneys in the fund are hereby continuously appropriated, and shall be allocated by the Department of Finance.
(c)Direct payments made to the State of California as civil penalties pursuant to the National Mortgage Settlement shall be deposited in the Unfair Competition Law Fund as required by the settlement.
(d)Direct payments made to the State of California pursuant to the National Mortgage Settlement, except for those payments made pursuant to subdivision (c), shall be deposited in the National Mortgage Special Deposit Fund.
(e)Notwithstanding any other law, the Director of Finance may allocate or otherwise use the funds in the National Mortgage Special Deposit Fund to offset General Fund expenditures in the 201112, 201213, and 201314 fiscal years. The Department of Finance and the Controllers office shall recognize this fiscal alignment accordingly for the purpose of the state budget process and legal basis of accounting.
(f)Not less than 30 days prior to allocating any moneys pursuant to subdivision (e), the Department of Finance shall submit an expenditure plan to the Joint Legislative Budget Committee detailing the proposed use of the moneys in the National Mortgage Special Deposit Fund.
(g)Notwithstanding any other law, the Controller may use the funds in the National Mortgage Special Deposit Fund for cashflow loans to the General Fund as provided in Sections 16310 and 16381.
(h)The Legislature hereby confirms and ratifies that the allocations of funds from the National Mortgage Special Deposit Fund in the 201112, 201213, and 201314 fiscal years were consistent with the direction given to the Director of Finance in subdivision (e) to offset General Fund expenditures in those years. The Legislature further confirms and ratifies that because those allocations were displayed in the Governors proposed budget for the 201213 and 201314 fiscal years, and left unchanged in the budget acts adopted for the 201213 and 201314 fiscal years, the Legislature was aware of, and approved, the allocation and expenditure of funds from the National Mortgage Special Deposit Fund to offset General Fund expenditures in those fiscal years. This subdivision is declaratory of existing law.
SEC. 4.The amount of twenty-five thousand dollars ($25,000) is hereby appropriated from the General Fund to the Department of Finance for legal fees and costs.
SEC. 5.This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
SECTION 1.The voters hereby find and declare that housing is a key factor for stabilization and recovery from mental illness and results in improved outcomes for individuals living with a mental illness. The Mental Health Services Act, an initiative measure enacted by the voters as Proposition 63 at the November 2, 2004, statewide general election, must therefore be amended to provide for the expenditure of funds from the Mental Health Services Fund to the No Place Like Home Program established pursuant to Part 3.9 (commencing with Section 5849.1) of Division 5 of the Welfare and Institutions Code, which finances the acquisition, design, construction, rehabilitation, or preservation of permanent supportive housing for individuals living with a severe mental illness who are homeless or at risk of chronic homelessness.SEC. 2.Section 1, this section, and Sections 3 to 7, inclusive, shall be known, and may be cited, as the No Place Like Home Act of 2018.SEC. 3.Section 5849.35 of the Welfare and Institutions Code is amended to read:5849.35.(a)The authority may do all of the following:(1)Consult with the commission and the State Department of Health Care Services concerning the implementation of the No Place Like Home Program, including the review of annual reports provided to the authority by the department pursuant to Section 5849.11.(2)Enter into one or more single-year or multiyear contracts with the department for the department to provide, and the authority to pay the department for providing, services described in Sections 5849.7, 5849.8, and 5849.9, related to permanent supportive housing for the target population and to provide for payments to the department from amounts on deposit in the Supportive Housing Program Subaccount created within the Mental Health Services Fund pursuant to paragraph (1) of subdivision (f) of Section 5890. Before entering into any contract pursuant to this paragraph, the executive director of the authority shall transmit to the commission a copy of the contract in substantially final form. The contract shall be deemed approved by the commission unless it acts within 10 days to disapprove the contract.(3)On or before June 15 and December 15 of each year, the authority shall certify to the Controller the amounts the authority is required to pay as provided in Section 5890 for the following six-month period to the department pursuant to any service contract entered into pursuant to paragraph (2).(b)The department may do all of the following:(1)Enter into one or more single-year or multiyear contracts with the authority to provide services described in Sections 5849.7, 5849.8, and 5849.9, related to permanent supportive housing for the target population and to receive payments from amounts on deposit in the Supportive Housing Program Subaccount pursuant to paragraph (1) of subdivision (f) of Section 5890. Payments received by the department under any service contract authorized by this paragraph shall be used, before any other allocation or distribution, to repay loans from the authority pursuant to Section 15463 of the Government Code.(2)Enter into one or more loan agreements with the authority as security for the repayment of the revenue bonds issued by the authority pursuant to Section 15463 of the Government Code. The department shall deposit the proceeds of these loans, excluding any refinancing loans to redeem, refund, or retire bonds, into the fund. The departments obligations to make payments under these loan agreements shall be limited obligations payable solely from amounts received pursuant to its service contracts with the authority.(3)The department may pledge and assign its right to receive all or a portion of the payments under the service contracts entered into pursuant to paragraph (1) directly to the authority or its bond trustee for the payment of principal, premiums, if any, and interest under any loan agreement authorized by paragraph (2).(c)The Legislature hereby finds and declares both of the following:(1)The consideration to be paid by the authority to the department for the services provided pursuant to the contracts authorized by paragraph (2) of subdivision (a) and paragraph (1) of subdivision (b) is fair and reasonable and in the public interest.(2)The service contracts and payments made by the authority to the department pursuant to a service contract authorized by paragraph (2) of subdivision (a) and paragraph (1) of subdivision (b) and the loan agreements and loan repayments made by the department to the authority pursuant to a loan agreement authorized by paragraph (2) of subdivision (b) shall not constitute a debt or liability, or a pledge of the faith and credit, of the state or any political subdivision, except as approved by the voters at the November 6, 2018, statewide general election.(d)The state hereby covenants with the holders from time to time of any bonds issued by the authority pursuant to Section 15463 of the Government Code that it will not alter, amend, or restrict the provisions of this section, paragraph (1) of subdivision (f) of Section 5890, or subdivision (b) of Section 5891 in any manner adverse to the interests of those bondholders so long as any of those bonds remain outstanding. The authority may include this covenant in the resolution, indenture, or other documents governing the bonds.(e)Agreements under this section are not subject to, and need not comply with, the requirements of any other law applicable to the execution of those agreements, including, but not limited to, the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).(f)Chapter 2 (commencing with Section 10290) of Part 2 of Division 2 of the Public Contract Code shall not apply to any contract entered into between the authority and the department under this section.SEC. 4.Section 5849.4 of the Welfare and Institutions Code is amended to read:5849.4.(a)The No Place Like Home Fund is hereby created within the State Treasury and, notwithstanding Section 13340 of the Government Code, continuously appropriated to the department, the authority, and the Treasurer for the purposes of this part. Accounts and subaccounts may be created within the fund as needed. Up to 5 percent of the amount deposited in the fund may be used for administrative expenses in implementing this part.(b)There shall be paid into the fund the following:(1)Any moneys from the receipt of loan proceeds by the department derived from the issuance of bonds by the authority under subdivision (b) of Section 15463 of the Government Code.(2)Any appropriation or transfer to the fund from the General Fund or other funds.(3)Any other federal or state grant, or from any private donation or grant, for the purposes of this part.(4)Any interest payment, loan repayments, or other return of funds.SEC. 5.Section 5849.15 is added to the Welfare and Institutions Code, to read:5849.15.The voters ratify all of the following provisions as being consistent with and in furtherance of Proposition 63, enacted by the voters at the November 2, 2004, statewide general election, and approve all of the following provisions for purposes of Section 1 of Article XVI of the California Constitution:(a)Chapter 43 of the Statutes of 2016, which amended Sections 5830, 5845, 5847, 5848, 5897, and 5899 and added this part.(b)Chapter 322 of the Statutes of 2016, which added Section 15463 to the Government Code, and amended Sections 5849.1, 5849.2, 5849.3, 5849.4, 5849.5, 5849.7, 5849.8, 5849.9, 5849.11, 5849.14, 5890, and 5891 of, added Section 5849.35 to, and repealed and added Section 5849.13 of, this code.(c)Those provisions of Chapter 561 of the Statutes of 2017 that amended any of the provisions referenced in subdivisions (a) and (b).(d)The amendments to Section 5849.35, 5849.4, and 5890 made by the act adding this section.(e)The issuance by the California Health Facilities Financing Authority of bonds in an amount not to exceed two billion dollars ($2,000,000,000) for the purposes of financing permanent supportive housing pursuant to the No Place Like Home Program and related purposes as set forth in subdivision (b) of Section 15463 of the Government Code, the issuance of bonds for the purpose of redeeming, refunding, or retiring bonds as set forth in subdivision (c) of Section 15463 of the Government Code, and the process by which those bonds are issued, secured, and repaid, as set forth in the provisions referenced in subdivisions (a) to (d), inclusive. SEC. 6.Section 5890 of the Welfare and Institutions Code is amended to read:5890.(a)The Mental Health Services Fund is hereby created in the State Treasury. The fund shall be administered by the state. Notwithstanding Section 13340 of the Government Code, all moneys in the fund are, except as provided in subdivision (d) of Section 5892, continuously appropriated, without regard to fiscal years, for the purpose of funding the following programs and other related activities as designated by other provisions of this division:(1)Part 3 (commencing with Section 5800), the Adult and Older Adult Mental Health System of Care Act.(2)Part 3.2 (commencing with Section 5830), Innovative Programs.(3)Part 3.6 (commencing with Section 5840), Prevention and Early Intervention Programs.(4)Part 3.9 (commencing with Section 5849.1), No Place Like Home Program.(5)Part 4 (commencing with Section 5850), the Childrens Mental Health Services Act.(b)The establishment of this fund and any other provisions of the act establishing it or the programs funded shall not be construed to modify the obligation of health care service plans and disability insurance policies to provide coverage for mental health services, including those services required under Section 1374.72 of the Health and Safety Code and Section 10144.5 of the Insurance Code, related to mental health parity. This act shall not be construed to modify the oversight duties of the Department of Managed Health Care or the duties of the Department of Insurance with respect to enforcing these obligations of plans and insurance policies.(c)This act shall not be construed to modify or reduce the existing authority or responsibility of the State Department of Health Care Services.(d)The State Department of Health Care Services shall seek approval of all applicable federal Medicaid approvals to maximize the availability of federal funds and eligibility of participating children, adults, and seniors for medically necessary care.(e)Share of costs for services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) of this division, shall be determined in accordance with the Uniform Method of Determining Ability to Pay applicable to other publicly funded mental health services, unless this Uniform Method is replaced by another method of determining copayments, in which case the new method applicable to other mental health services shall be applicable to services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) of this division.(f)(1)The Supportive Housing Program Subaccount is hereby created in the Mental Health Services Fund. Notwithstanding Section 13340 of the Government Code, all moneys in the subaccount are reserved and continuously appropriated, without regard to fiscal years, to the California Health Facilities Financing Authority to provide funds to meet its financial obligations pursuant to any service contracts entered into pursuant to Section 5849.35. Notwithstanding any other law, including any other provision of this section, no later than the last day of each month, the Controller shall, before any transfer or expenditure from the fund for any other purpose for the following month, transfer from the Mental Health Services Fund to the Supportive Housing Program Subaccount an amount that has been certified by the California Health Facilities Financing Authority pursuant to paragraph (3) of subdivision (a) of Section 5849.35, but not to exceed an aggregate amount of one hundred forty million dollars ($140,000,000) per year. If in any month the amounts in the Mental Health Services Fund are insufficient to fully transfer to the subaccount or the amounts in the subaccount are insufficient to fully pay the amount certified by the California Health Facilities Financing Authority, the shortfall shall be carried over to the next month, to be transferred by the Controller with any transfer required by the preceding sentence. Moneys in the Supportive Housing Program Subaccount shall not be loaned to the General Fund pursuant to Section 16310 or 16381 of the Government Code.(2)Prior to the issuance of any bonds pursuant to Section 15463 of the Government Code, the Legislature may appropriate for transfer funds in the Mental Health Services Fund to the Supportive Housing Program Subaccount in an amount up to one hundred forty million dollars ($140,000,000) per year. Any amount appropriated for transfer pursuant to this paragraph and deposited in the No Place Like Home Fund shall reduce the authorized but unissued amount of bonds that the California Health Facilities Financing Authority may issue pursuant to Section 15463 of the Government Code by a corresponding amount. Notwithstanding Section 13340 of the Government Code, all moneys in the subaccount transferred pursuant to this paragraph are reserved and continuously appropriated, without regard to fiscal years, for transfer to the No Place Like Home Fund, to be used for purposes of Part 3.9 (commencing with Section 5849.1). The Controller shall, before any transfer or expenditure from the fund for any other purpose for the following month but after any transfer from the fund for purposes of paragraph (1), transfer moneys appropriated from the Mental Health Services Fund to the subaccount pursuant to this paragraph in equal amounts over the following 12-month period, beginning no later than 90 days after the effective date of the appropriation by the Legislature. If in any month the amounts in the Mental Health Services Fund are insufficient to fully transfer to the subaccount or the amounts in the subaccount are insufficient to fully pay the amount appropriated for transfer pursuant to this paragraph, the shortfall shall be carried over to the next month.(3)The sum of any transfers described in paragraphs (1) and (2) shall not exceed an aggregate of one hundred forty million dollars ($140,000,000) per year.(4)Paragraph (2) shall become inoperative once any bonds authorized pursuant to Section 15463 of the Government Code are issued.SEC. 7.The Legislature may, by majority vote, amend the No Place Like Home Act of 2018.SEC. 8.Sections 1 to 7, inclusive, of this act shall become operative upon the adoption by the voters of the No Place Like Home Act of 2018.SEC. 9.(a)(1)Notwithstanding Sections 9040, 9043, 9044, 9061, and 9082 of the Elections Code, or any other law, Sections 1 to 7, inclusive, of this act shall be submitted by the Secretary of State to the voters as a single measure, the No Place Like Home Act of 2018, at the November 6, 2018, statewide general election.(2)The requirement of Section 9040 of the Elections Code that a measure submitted to the people by the Legislature appear on the ballot of the first statewide election occurring at least 131 days after the adoption of the proposal by the Legislature shall not apply to the No Place Like Home Act of 2018.(b)The Secretary of State shall include in the ballot pamphlets mailed pursuant to Section 9094 of the Elections Code the information specified in Section 9084 of the Elections Code regarding the No Place Like Home Act of 2018. If that inclusion is not possible, the Secretary of State shall publish a supplemental ballot pamphlet regarding the No Place Like Home Act of 2018 to be mailed with the ballot pamphlet. If the supplemental ballot pamphlet cannot be mailed with the ballot pamphlet, the supplemental ballot pamphlet shall be mailed separately.(c)Notwithstanding Section 9054 of the Elections Code or any other law, the translations of the ballot title and the condensed statement of the ballot title required pursuant to Section 9054 of the Elections Code for the No Place Like Home Act of 2018 may be made available for public examination at a later date than the start of the public examination period for the ballot pamphlet. SEC. 10.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:In order to expeditiously provide necessary funding for the No Place Like Home Program, so as to ensure the efficient and timely development of supportive housing, it is necessary that this act take effect immediately.The voters hereby find and declare that housing is a key factor for stabilization and recovery from mental illness and results in improved outcomes for individuals living with a mental illness. The Mental Health Services Act, an initiative measure enacted by the voters as Proposition 63 at the November 2, 2004, statewide general election, must therefore be amended to provide for the expenditure of funds from the Mental Health Services Fund to the No Place Like Home Program established pursuant to Part 3.9 (commencing with Section 5849.1) of Division 5 of the Welfare and Institutions Code, which finances the acquisition, design, construction, rehabilitation, or preservation of permanent supportive housing for individuals living with a severe mental illness who are homeless or at risk of chronic homelessness.
SEC. 2.Section 1, this section, and Sections 4 to 8, 3 to 7, inclusive, shall be known, and may be cited, as the No Place Like Home Act of 2018.
SEC. 3.Section 53600 is added to the Health and Safety Code, to read:53600.(a)For loans issued directly by the department, the department may charge an ongoing monitoring fee to cover the costs of project monitoring.(b)All moneys received by the department in repayment of loans made pursuant to this part, including interest and payments in advance in lieu of future interest, shall be deposited into the Housing Rehabilitation Loan Fund established by Section 50661, and, notwithstanding Section 13340 of the Government Code, all such moneys deposited pursuant to this part are continuously appropriated to the department for purposes of the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31).SEC. 4.SEC. 3.Section 5849.35 of the Welfare and Institutions Code is amended to read:5849.35.(a)The authority may do all of the following:
(1)Consult with the commission and the State Department of Health Care Services concerning the implementation of the No Place Like Home Program, including the review of annual reports provided to the authority by the department pursuant to Section 5849.11.
(2)Enter into one or more single-year or multiyear contracts with the department for the department to provide, and the authority to pay the department for providing, services described in Sections 5849.7, 5849.8, and 5849.9, related to permanent supportive housing for the target population and to provide for payments to the department from amounts on deposit in the Supportive Housing Program Subaccount created within the Mental Health Services Fund pursuant to paragraph (1) of subdivision (f) of Section 5890. Before entering into any contract pursuant to this paragraph, the executive director of the authority shall transmit to the commission a copy of the contract in substantially final form. The contract shall be deemed approved by the commission unless it acts within 10 days to disapprove the contract.
(3)On or before June 15 and December 15 of each year, the authority shall certify to the Controller the amounts the authority is required to pay as provided in Section 5890 for the following six-month period to the department pursuant to any service contract entered into pursuant to paragraph (2).
(b)The department may do all of the following:
(1)Enter into one or more single-year or multiyear contracts with the authority to provide services described in Sections 5849.7, 5849.8, and 5849.9, related to permanent supportive housing for the target population and to receive payments from amounts on deposit in the Supportive Housing Program Subaccount pursuant to paragraph (1) of subdivision (f) of Section 5890. Payments received by the department under any service contract authorized by this paragraph shall be used, before any other allocation or distribution, to repay loans from the authority pursuant to Section 15463 of the Government Code.
(2)Enter into one or more loan agreements with the authority as security for the repayment of the revenue bonds issued by the authority pursuant to Section 15463 of the Government Code. The department shall deposit the proceeds of these loans, excluding any refinancing loans to redeem, refund, or retire bonds, into the fund. The departments obligations to make payments under these loan agreements shall be limited obligations payable solely from amounts received pursuant to its service contracts with the authority.
(3)The department may pledge and assign its right to receive all or a portion of the payments under the service contracts entered into pursuant to paragraph (1) directly to the authority or its bond trustee for the payment of principal, premiums, if any, and interest under any loan agreement authorized by paragraph (2).
(c)The Legislature hereby finds and declares both of the following:
(1)The consideration to be paid by the authority to the department for the services provided pursuant to the contracts authorized by paragraph (2) of subdivision (a) and paragraph (1) of subdivision (b) is fair and reasonable and in the public interest.
(2)The service contracts and payments made by the authority to the department pursuant to a service contract authorized by paragraph (2) of subdivision (a) and paragraph (1) of subdivision (b) and the loan agreements and loan repayments made by the department to the authority pursuant to a loan agreement authorized by paragraph (2) of subdivision (b) shall not constitute a debt or liability, or a pledge of the faith and credit, of the state or any political subdivision, except as approved by the voters at the November 6, 2018, statewide general election.
(d)The state hereby covenants with the holders from time to time of any bonds issued by the authority pursuant to Section 15463 of the Government Code that it will not alter, amend, or restrict the provisions of this section, paragraph (1) of subdivision (f) of Section 5890, or subdivision (b) of Section 5891 in any manner adverse to the interests of those bondholders so long as any of those bonds remain outstanding. The authority may include this covenant in the resolution, indenture, or other documents governing the bonds.
(e)Agreements under this section are not subject to, and need not comply with, the requirements of any other law applicable to the execution of those agreements, including, but not limited to, the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(f)Chapter 2 (commencing with Section 10290) of Part 2 of Division 2 of the Public Contract Code shall not apply to any contract entered into between the authority and the department under this section.
SEC. 5.SEC. 4.Section 5849.4 of the Welfare and Institutions Code is amended to read:5849.4.(a)The No Place Like Home Fund is hereby created within the State Treasury and, notwithstanding Section 13340 of the Government Code, continuously appropriated to the department, the authority, and the Treasurer for the purposes of this part. Accounts and subaccounts may be created within the fund as needed. Up to 5 percent of the amount deposited in the fund may be used for administrative expenses in implementing this part.
(b)There shall be paid into the fund the following:
(1)Any moneys from the receipt of loan proceeds by the department derived from the issuance of bonds by the authority under subdivision (b) of Section 15463 of the Government Code.
(2)Any appropriation or transfer to the fund from the General Fund or other funds.
(3)Any other federal or state grant, or from any private donation or grant, for the purposes of this part.
(4)Any interest payment, loan repayments, or other return of funds.
SEC. 6.SEC. 5.Section 5849.15 is added to the Welfare and Institutions Code, to read:5849.15.The voters ratify all of the following provisions as being consistent with and in furtherance of Proposition 63, enacted by the voters at the November 2, 2004, statewide general election, and approve all of the following provisions for purposes of Section 1 of Article XVI of the California Constitution:
(a)Chapter 43 of the Statutes of 2016, which amended Sections 5830, 5845, 5847, 5848, 5897, and 5899 and added this part.
(b)Chapter 322 of the Statutes of 2016, which added Section 15463 to the Government Code, and amended Sections 5849.1, 5849.2, 5849.3, 5849.4, 5849.5, 5849.7, 5849.8, 5849.9, 5849.11, 5849.14, 5890, and 5891 of, added Section 5849.35 to, and repealed and added Section 5849.13 of, this code.
(c)Those provisions of Chapter 561 of the Statutes of 2017 that amended any of the provisions referenced in subdivisions (a) and (b).
(d)The amendments to Section 5849.35, 5849.4, and 5890 made by the act adding this section.
(e)The issuance by the California Health Facilities Financing Authority of bonds in an amount not to exceed two billion dollars ($2,000,000,000) for the purposes of financing permanent supportive housing pursuant to the No Place Like Home Program and related purposes as set forth in subdivision (b) of Section 15463 of the Government Code, the issuance of bonds for the purpose of redeeming, refunding, or retiring bonds as set forth in subdivision (c) of Section 15463 of the Government Code, and the process by which those bonds are issued, secured, and repaid, as set forth in the provisions referenced in subdivisions (a) to (d), inclusive.
SEC. 7.SEC. 6.Section 5890 of the Welfare and Institutions Code is amended to read:5890.(a)The Mental Health Services Fund is hereby created in the State Treasury. The fund shall be administered by the state. Notwithstanding Section 13340 of the Government Code, all moneys in the fund are, except as provided in subdivision (d) of Section 5892, continuously appropriated, without regard to fiscal years, for the purpose of funding the following programs and other related activities as designated by other provisions of this division:
(1)Part 3 (commencing with Section 5800), the Adult and Older Adult Mental Health System of Care Act.
(2)Part 3.2 (commencing with Section 5830), Innovative Programs.
(3)Part 3.6 (commencing with Section 5840), Prevention and Early Intervention Programs.
(4)Part 3.9 (commencing with Section 5849.1), No Place Like Home Program.
(5)Part 4 (commencing with Section 5850), the Childrens Mental Health Services Act.
(b)The establishment of this fund and any other provisions of the act establishing it or the programs funded shall not be construed to modify the obligation of health care service plans and disability insurance policies to provide coverage for mental health services, including those services required under Section 1374.72 of the Health and Safety Code and Section 10144.5 of the Insurance Code, related to mental health parity. This act shall not be construed to modify the oversight duties of the Department of Managed Health Care or the duties of the Department of Insurance with respect to enforcing these obligations of plans and insurance policies.
(c)This act shall not be construed to modify or reduce the existing authority or responsibility of the State Department of Health Care Services.
(d)The State Department of Health Care Services shall seek approval of all applicable federal Medicaid approvals to maximize the availability of federal funds and eligibility of participating children, adults, and seniors for medically necessary care.
(e)Share of costs for services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) of this division, shall be determined in accordance with the Uniform Method of Determining Ability to Pay applicable to other publicly funded mental health services, unless this Uniform Method is replaced by another method of determining copayments, in which case the new method applicable to other mental health services shall be applicable to services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) of this division.
(f)(1)The Supportive Housing Program Subaccount is hereby created in the Mental Health Services Fund. Notwithstanding Section 13340 of the Government Code, all moneys in the subaccount are reserved and continuously appropriated, without regard to fiscal years, to the California Health Facilities Financing Authority to provide funds to meet its financial obligations pursuant to any service contracts entered into pursuant to Section 5849.35. Notwithstanding any other law, including any other provision of this section, no later than the last day of each month, the Controller shall, before any transfer or expenditure from the fund for any other purpose for the following month, transfer from the Mental Health Services Fund to the Supportive Housing Program Subaccount an amount that has been certified by the California Health Facilities Financing Authority pursuant to paragraph (3) of subdivision (a) of Section 5849.35, but not to exceed an aggregate amount of one hundred forty million dollars ($140,000,000) per year. If in any month the amounts in the Mental Health Services Fund are insufficient to fully transfer to the subaccount or the amounts in the subaccount are insufficient to fully pay the amount certified by the California Health Facilities Financing Authority, the shortfall shall be carried over to the next month, to be transferred by the Controller with any transfer required by the preceding sentence. Moneys in the Supportive Housing Program Subaccount shall not be loaned to the General Fund pursuant to Section 16310 or 16381 of the Government Code.
(2)Prior to the issuance of any bonds pursuant to Section 15463 of the Government Code, the Legislature may appropriate for transfer funds in the Mental Health Services Fund to the Supportive Housing Program Subaccount in an amount up to one hundred forty million dollars ($140,000,000) per year. Any amount appropriated for transfer pursuant to this paragraph and deposited in the No Place Like Home Fund shall reduce the authorized but unissued amount of bonds that the California Health Facilities Financing Authority may issue pursuant to Section 15463 of the Government Code by a corresponding amount. Notwithstanding Section 13340 of the Government Code, all moneys in the subaccount transferred pursuant to this paragraph are reserved and continuously appropriated, without regard to fiscal years, for transfer to the No Place Like Home Fund, to be used for purposes of Part 3.9 (commencing with Section 5849.1). The Controller shall, before any transfer or expenditure from the fund for any other purpose for the following month but after any transfer from the fund for purposes of paragraph (1), transfer moneys appropriated from the Mental Health Services Fund to the subaccount pursuant to this paragraph in equal amounts over the following 12-month period, beginning no later than 90 days after the effective date of the appropriation by the Legislature. If in any month the amounts in the Mental Health Services Fund are insufficient to fully transfer to the subaccount or the amounts in the subaccount are insufficient to fully pay the amount appropriated for transfer pursuant to this paragraph, the shortfall shall be carried over to the next month.
(3)The sum of any transfers described in paragraphs (1) and (2) shall not exceed an aggregate of one hundred forty million dollars ($140,000,000) per year.
(4)Paragraph (2) shall become inoperative once any bonds authorized pursuant to Section 15463 of the Government Code are issued.
SEC. 8.SEC. 7.The Legislature may, by majority vote, amend the No Place Like Home Act of 2018.
SEC. 9.SEC. 8.Sections 1 and 2 and Sections 4 to 8, to 7, inclusive, of this act shall become operative upon the adoption by the voters of the No Place Like Home Act of 2018.
SEC. 10.SEC. 9.(a)(1)Notwithstanding Sections 9040, 9043, 9044, 9061, and 9082 of the Elections Code, or any other law, Sections 1 and 2 and Sections 4 to 8, to 7, inclusive, of this act shall be submitted by the Secretary of State to the voters as a single measure, the No Place Like Home Act of 2018, at the November 6, 2018, statewide general election.
(2)The requirement of Section 9040 of the Elections Code that a measure submitted to the people by the Legislature appear on the ballot of the first statewide election occurring at least 131 days after the adoption of the proposal by the Legislature shall not apply to the No Place Like Home Act of 2018.
(b)The Secretary of State shall include in the ballot pamphlets mailed pursuant to Section 9094 of the Elections Code the information specified in Section 9084 of the Elections Code regarding the No Place Like Home Act of 2018. If that inclusion is not possible, the Secretary of State shall publish a supplemental ballot pamphlet regarding the No Place Like Home Act of 2018 to be mailed with the ballot pamphlet. If the supplemental ballot pamphlet cannot be mailed with the ballot pamphlet, the supplemental ballot pamphlet shall be mailed separately.
(c)Notwithstanding Section 9054 of the Elections Code or any other law, the translations of the ballot title and the condensed statement of the ballot title required pursuant to Section 9054 of the Elections Code for the No Place Like Home Act of 2018 may be made available for public examination at a later date than the start of the public examination period for the ballot pamphlet.
SEC. 11.This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.SEC. 10.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to expeditiously provide necessary funding for the No Place Like Home Program, so as to ensure the efficient and timely development of supportive housing, it is necessary that this act take effect immediately.
The voters hereby find and declare that housing is a key factor for stabilization and recovery from mental illness and results in improved outcomes for individuals living with a mental illness. The Mental Health Services Act, an initiative measure enacted by the voters as Proposition 63 at the November 2, 2004, statewide general election, must therefore be amended to provide for the expenditure of funds from the Mental Health Services Fund to the No Place Like Home Program established pursuant to Part 3.9 (commencing with Section 5849.1) of Division 5 of the Welfare and Institutions Code, which finances the acquisition, design, construction, rehabilitation, or preservation of permanent supportive housing for individuals living with a severe mental illness who are homeless or at risk of chronic homelessness.
SEC. 2.Section 1, this section, and Sections 4 to 8, inclusive, shall be known, and may be cited, as the No Place Like Home Act of 2018.
SEC. 3.Section 53600 is added to the Health and Safety Code, to read:53600.(a)For loans issued directly by the department, the department may charge an ongoing monitoring fee to cover the costs of project monitoring.
(b)All moneys received by the department in repayment of loans made pursuant to this part, including interest and payments in advance in lieu of future interest, shall be deposited into the Housing Rehabilitation Loan Fund established by Section 50661, and, notwithstanding Section 13340 of the Government Code, all such moneys deposited pursuant to this part are continuously appropriated to the department for purposes of the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31).
SEC. 4.Section 5849.35 of the Welfare and Institutions Code is amended to read:5849.35.(a)The authority may do all of the following:
(1)Consult with the commission and the State Department of Health Care Services concerning the implementation of the No Place Like Home Program, including the review of annual reports provided to the authority by the department pursuant to Section 5849.11.
(2)Enter into one or more single-year or multiyear contracts with the department for the department to provide, and the authority to pay the department for providing, services described in Sections 5849.7, 5849.8, and 5849.9, related to permanent supportive housing for the target population. population and to provide for payments to the department from amounts on deposit in the Supportive Housing Program Subaccount created within the Mental Health Services Fund pursuant to paragraph (1) of subdivision (f) of Section 5890. Before entering into any contract pursuant to this paragraph, the executive director of the authority shall transmit to the commission a copy of the contract in substantially final form. The contract shall be deemed approved by the commission unless it acts within 10 days to disapprove the contract.
(3)On or before June 15 and December 15 of each year, the authority shall certify to the Controller the amounts the authority is required to pay as provided in Section 5890 for the following six-month period to the department pursuant to any service contract entered into pursuant to paragraph (2).
(b)The department may do all of the following:
(1)Enter into one or more single-year or multiyear contracts with the authority to provide services described in Sections 5849.7, 5849.8, and 5849.9, related to permanent supportive housing for the target population. population and to receive payments from amounts on deposit in the Supportive Housing Program Subaccount pursuant to paragraph (1) of subdivision (f) of Section 5890. Payments received by the department under any service contract authorized by this paragraph shall be used, before any other allocation or distribution, to repay loans from the authority pursuant to Section 15463 of the Government Code.
(2)Enter into one or more loan agreements with the authority as security for the repayment of the revenue bonds issued by the authority pursuant to Section 15463 of the Government Code. The department shall deposit the proceeds of these loans, excluding any refinancing loans to redeem, refund, or retire bonds, into the fund. The departments obligations to make payments under these loan agreements shall be limited obligations payable solely from amounts received pursuant to its service contracts with the authority.
(3)The department may pledge and assign its right to receive all or a portion of the payments under the service contracts entered into pursuant to paragraph (1) directly to the authority or its bond trustee for the payment of principal, premiums, if any, and interest under any loan agreement authorized by paragraph (2).
(c)The Legislature hereby finds and declares both of the following:
(1)The consideration to be paid by the authority to the department for the services provided pursuant to the contracts authorized by paragraph (2) of subdivision (a) and paragraph (1) of subdivision (b) is fair and reasonable and in the public interest.
(2)The service contracts and payments made by the authority to the department pursuant to a service contract authorized by paragraph (2) of subdivision (a) and paragraph (1) of subdivision (b) and the loan agreements and loan repayments made by the department to the authority pursuant to a loan agreement authorized by paragraph (2) of subdivision (b) shall not constitute a debt or liability, or a pledge of the faith and credit, of the state or any political subdivision. subdivision, except as approved by the voters at the November 6, 2018, statewide general election.
(d)The state hereby covenants with the holders from time to time of any bonds issued by the authority pursuant to Section 15463 of the Government Code that it will not alter, amend, or restrict the provisions of this section, paragraph (1) of subdivision (f) of Section 5890, or subdivision (b) of Section 5891 in any manner adverse to the interests of those bondholders so long as any of those bonds remain outstanding. The authority may include this covenant in the resolution, indenture, or other documents governing the bonds.
(e)Agreements under this section are not subject to, and need not comply with, the requirements of any other law applicable to the execution of those agreements, including, but not limited to, the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(f)Chapter 2 (commencing with Section 10290) of Part 2 of Division 2 of the Public Contract Code shall not apply to any contract entered into between the authority and the department under this section.
SEC. 5.Section 5849.4 of the Welfare and Institutions Code is amended to read:5849.4.(a)The No Place Like Home Fund is hereby created within the State Treasury and, notwithstanding Section 13340 of the Government Code, continuously appropriated to the department, the authority, and the Treasurer for the purposes of this part. Accounts and subaccounts may be created within the fund as needed. Up to 5 percent of the amount deposited in the fund may be used for administrative expenses in implementing this part.
(b)There shall be paid into the fund the following:
(1)Any moneys from the receipt of loan proceeds by the department derived from the issuance of bonds by the authority under subdivision (b) of Section 15463 of the Government Code.
(2)Any appropriation or transfer to the fund from the General Fund or other funds.
(2)(3)Any other federal or state grant, or from any private donation or grant, for the purposes of this part.
(3)(4)Any interest payment, loan repayments, or other return of funds.
SEC. 6.Section 5849.15 is added to the Welfare and Institutions Code, to read:5849.15.The voters ratify all of the following provisions as being consistent with and in furtherance of Proposition 63, enacted by the voters at the November 2, 2004, statewide general election, and approve all of the following provisions for purposes of Section 1 of Article XVI of the California Constitution:
(a)Chapter 43 of the Statutes of 2016, which amended Sections 5830, 5845, 5847, 5848, 5897, and 5899 and added this part.
(b)Chapter 322 of the Statutes of 2016, which added Section 15463 to the Government Code, and amended Sections 5849.1, 5849.2, 5849.3, 5849.4, 5849.5, 5849.7, 5849.8, 5849.9, 5849.11, 5849.14, 5890, and 5891 of, added Section 5849.35 to, and repealed and added Section 5849.13 of, this code.
(c)Those provisions of Chapter 561 of the Statutes of 2017 that amended any of the provisions referenced in subdivisions (a) and (b).
(d)The amendments to Section 5849.35, 5849.4, and 5890 made by the act adding this section.
(e)The issuance by the California Health Facilities Financing Authority of bonds in an amount not to exceed two billion dollars ($2,000,000,000) for the purposes of financing permanent supportive housing pursuant to the No Place Like Home Program and related purposes as set forth in subdivision (b) of Section 15463 of the Government Code, the issuance of bonds for the purpose of redeeming, refunding, or retiring bonds as set forth in subdivision (c) of Section 15463 of the Government Code, and the process by which those bonds are issued, secured, and repaid, as set forth in the provisions referenced in subdivisions (a) to (d), inclusive.
SEC. 7.Section 5890 of the Welfare and Institutions Code is amended to read:5890.(a)The Mental Health Services Fund is hereby created in the State Treasury. The fund shall be administered by the state. Notwithstanding Section 13340 of the Government Code, all moneys in the fund are, except as provided in subdivision (d) of Section 5892, continuously appropriated, without regard to fiscal years, for the purpose of funding the following programs and other related activities as designated by other provisions of this division:
(1)Part 3 (commencing with Section 5800), the Adult and Older Adult Mental Health System of Care Act.
(2)Part 3.2 (commencing with Section 5830), Innovative Programs.
(3)Part 3.6 (commencing with Section 5840), Prevention and Early Intervention Programs.
(4)Part 3.9 (commencing with Section 5849.1), No Place Like Home Program.
(5)Part 4 (commencing with Section 5850), the Childrens Mental Health Services Act.
(b)The establishment of this fund and any other provisions of the act establishing it or the programs funded shall not be construed to modify the obligation of health care service plans and disability insurance policies to provide coverage for mental health services, including those services required under Section 1374.72 of the Health and Safety Code and Section 10144.5 of the Insurance Code, related to mental health parity. This act shall not be construed to modify the oversight duties of the Department of Managed Health Care or the duties of the Department of Insurance with respect to enforcing these obligations of plans and insurance policies.
(c)This act shall not be construed to modify or reduce the existing authority or responsibility of the State Department of Health Care Services.
(d)The State Department of Health Care Services shall seek approval of all applicable federal Medicaid approvals to maximize the availability of federal funds and eligibility of participating children, adults, and seniors for medically necessary care.
(e)Share of costs for services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) of this division, shall be determined in accordance with the Uniform Method of Determining Ability to Pay applicable to other publicly funded mental health services, unless this Uniform Method is replaced by another method of determining copayments, in which case the new method applicable to other mental health services shall be applicable to services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) of this division.
(f)(1)The Supportive Housing Program Subaccount is hereby created in the Mental Health Services Fund. Notwithstanding Section 13340 of the Government Code, all moneys in the subaccount are reserved and continuously appropriated, without regard to fiscal years, to the California Health Facilities Financing Authority to provide funds to meet its financial obligations pursuant to any service contracts entered into pursuant to Section 5849.35. Notwithstanding any other law, including any other provision of this section, no later than the last day of each month, the Controller shall, before any transfer or expenditure from the fund for any other purpose for the following month, transfer from the Mental Health Services Fund to the Supportive Housing Program Subaccount an amount that has been certified by the California Health Facilities Financing Authority pursuant to paragraph (3) of subdivision (a) of Section 5849.35, but not to exceed an aggregate amount of one hundred forty million dollars ($140,000,000) per year. If in any month the amounts in the Mental Health Services Fund are insufficient to fully transfer to the subaccount or the amounts in the subaccount are insufficient to fully pay the amount certified by the California Health Facilities Financing Authority, the shortfall shall be carried over to the next month. month, to be transferred by the Controller with any transfer required by the preceding sentence. Moneys in the Supportive Housing Program Subaccount shall not be loaned to the General Fund pursuant to Section 16310 or 16381 of the Government Code.
(2)Prior to the issuance of any bonds pursuant to Section 15463 of the Government Code, the Legislature may appropriate for transfer funds in the Mental Health Services Fund to the Supportive Housing Program Subaccount in an amount up to one hundred forty million dollars ($140,000,000) per year. Any amount appropriated for transfer pursuant to this paragraph and deposited in the No Place Like Home Fund shall reduce the authorized but unissued amount of bonds that the California Health Facilities Financing Authority may issue pursuant to Section 15463 of the Government Code by a corresponding amount. Notwithstanding Section 13340 of the Government Code, all moneys in the subaccount transferred pursuant to this paragraph are reserved and continuously appropriated, without regard to fiscal years, for transfer to the No Place Like Home Fund, to be used for purposes of Part 3.9 (commencing with Section 5849.1). The Controller shall, before any transfer or expenditure from the fund for any other purpose for the following month but after any transfer from the fund for purposes of paragraph (1), transfer moneys appropriated from the Mental Health Services Fund to the subaccount pursuant to this paragraph in equal amounts over the following 12-month period, beginning no later than 90 days after the effective date of the appropriation by the Legislature. If in any month the amounts in the Mental Health Services Fund are insufficient to fully transfer to the subaccount or the amounts in the subaccount are insufficient to fully pay the amount appropriated for transfer pursuant to this paragraph, the shortfall shall be carried over to the next month.
(3)The sum of any transfers described in paragraphs (1) and (2) shall not exceed an aggregate of one hundred forty million dollars ($140,000,000) per year.
(4)Paragraph (2) shall become inoperative once any bonds authorized pursuant to Section 15463 of the Government Code are issued.
SEC. 8.The Legislature may, by majority vote, amend the No Place Like Home Act of 2018.
SEC. 9.Sections 1 and 2 and Sections 4 to 8, inclusive, of this act shall become operative upon the adoption by the voters of the No Place Like Home Act of 2018.
SEC. 10.(a)(1)Notwithstanding Sections 9040, 9043, 9044, 9061, and 9082 of the Elections Code, or any other law, Sections 1 and 2 and Sections 4 to 8, inclusive, of this act shall be submitted by the Secretary of State to the voters as a single measure, the No Place Like Home Act of 2018, at the November 6, 2018, statewide general election.
(2)The requirement of Section 9040 of the Elections Code that a measure submitted to the people by the Legislature appear on the ballot of the first statewide election occurring at least 131 days after the adoption of the proposal by the Legislature shall not apply to the No Place Like Home Act of 2018.
(b)The Secretary of State shall include in the ballot pamphlets mailed pursuant to Section 9094 of the Elections Code the information specified in Section 9084 of the Elections Code regarding the No Place Like Home Act of 2018. If that inclusion is not possible, the Secretary of State shall publish a supplemental ballot pamphlet regarding the No Place Like Home Act of 2018 to be mailed with the ballot pamphlet. If the supplemental ballot pamphlet cannot be mailed with the ballot pamphlet, the supplemental ballot pamphlet shall be mailed separately.
(c)Notwithstanding Section 9054 of the Elections Code or any other law, the translations of the ballot title and the condensed statement of the ballot title required pursuant to Section 9054 of the Elections Code for the No Place Like Home Act of 2018 may be made available for public examination at a later date than the start of the public examination period for the ballot pamphlet.
SEC. 11.This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
SECTION 1.It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2018.It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2018.
|
Date
|
Status
|
|---|---|
| Sep 10, 2018 | Chaptered by Secretary of State. Chapter 331, Statutes of 2018. |
| Sep 10, 2018 | Approved by the Governor. |
| Sep 6, 2018 | Enrolled and presented to the Governor at 4 p.m. |
| Aug 30, 2018 | Assembly amendments concurred in. (Ayes 27. Noes 12.) Ordered to engrossing and enrolling. |
| Aug 29, 2018 | In Senate. Concurrence in Assembly amendments pending. |
| Aug 29, 2018 | Read third time. Passed. Ordered to the Senate. |
| Aug 16, 2018 | Ordered to third reading. |
| Aug 14, 2018 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET. |
| Aug 13, 2018 | Re-referred to Com. on BUDGET pursuant to Assembly Rule 97. |
| Jun 14, 2018 | Assembly Rule 96 suspended. |
| Jun 12, 2018 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET. |
| Jun 11, 2018 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET. |
| May 7, 2018 | Referred to Com. on BUDGET. |
| May 3, 2018 | In Assembly. Read first time. Held at Desk. |
| May 3, 2018 | Read third time. Passed. (Ayes 24. Noes 11.) Ordered to the Assembly. |
| May 1, 2018 | Read second time. Ordered to third reading. |
| Apr 30, 2018 | Withdrawn from committee. (Ayes 25. Noes 11.) |
| Jan 16, 2018 | Referred to Com. on B. & F.R. |
| Jan 11, 2018 | From printer. May be acted upon on or after February 10. |
| Jan 10, 2018 | Introduced. To Com. on RLS. for assignment. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 30, 2018 | Unfinished Business SB861 B. & F.R. (Mitchell) Concurrence | Senate Floor |
Passed |
|
| Aug 29, 2018 | SB 861 B. & F. R. Senate Third Reading By TING | Assembly Floor |
Passed |
|
| May 3, 2018 | Senate 3rd Reading SB861 B. & F.R. | Senate Floor |
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.
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 861 |
UNFINISHED BUSINESS
Bill No: SB 861
Author: Committee on Budget and Fiscal Review
Amended: 8/14/18
ASSEMBLY FLOOR: 51-25, 8/29/18 - See last page for vote
SUBJECT: National Mortgage Settlement Fund: allocations
DIGEST:
This bill makes statutory changes related to the National Mortgage Special Deposit Fund.
Assembly Amendments
delete the Senate version of the bill and add the current language.
ANALYSIS: This bill makes findings and declarations regarding the statutory changes and additional funding the state has directed towards housing issues in recent years. These include statutory changes to the California Environmental Quality Act process, changes to local planning policies and processes, and additional local financing mechanisms. It also highlights the placement of a $4 billion housing bond on the November 2018 ballot, the $75 document fee on real estate transactions to fund ongoing affordable housing programs, and $4 billion provided by the California Housing Finance Agency to low- and moderate-income families that do not qualify for the low-income multifamily programs.
This bill provides legislative confirmation that the allocations of funds from the Special Deposit Fund to the General Fund in 2011-12, 2012-13, and 2013-14 were consistent with the direction given to the Director of the Department of Finance in SB 1006 (Committee on Budget and Fiscal Review, Chapter 32, Statutes of 2012). This bill also confirms and ratifies that, because those allocations were displayed in the Governor’s proposed budget for the years in question, and left unchanged in the budget acts adopted in those years, the Legislature was aware of, and approved, the allocations and expenditures in question.
This bill also appropriates $25,000 from the General Fund to the Department of Finance for legal fees and costs.
Background
In 2012, the federal government and 49 states sued, and eventually settled with, the five largest mortgage servicers in the country related to their actions leading up to and during the 2008 financial crisis. The resulting National Mortgage Settlement (NMS) resulted in comprehensive new mortgage servicing standards, provided more than $20 billion in financial relief for homeowners damaged by the mortgage crisis, and provided about $2.5 billion directly to states for a variety of uses, including “to compensate the states for costs resulting from the alleged unlawful conduct of the [bank defendants].” California’s share of this $2.5 billion was roughly $410 million. Under the terms of the settlement, each state’s Attorney General would designate the uses of the funds. The California Attorney General’s Office designated allowable uses of the received funds.
SB 1006 created the National Mortgage Settlement Deposit Fund to receive the state’s share of the 2012 NMS. SB 1006 also authorized the use of NMS funds to offset relevant General Fund expenditures in the 2011-12, 2012-13, and 2013-14 fiscal years. The state subsequently transferred funds from the Special Deposit Fund to the General Fund to offset the cost of programs that support public protection, consumer fraud enforcement and litigation, and housing related programs during the years in question.
In 2014, several plaintiffs sued the state for the return of these transferred funds, alleging that the majority of the transfer of funds was unlawful under both state and federal law. Both the trial court and appeals court found in favor of the plaintiffs, and directed the state to return roughly $331 million to the Special Deposit Fund.
FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No
None received
OPPOSITION: (Verified 8/17/18)
None received
ASSEMBLY FLOOR: 51-25, 8/29/18
AYES: Aguiar-Curry, Arambula, Berman, Bloom, Bonta, Burke, Calderon, Carrillo, Chau, Chiu, Chu, Cooley, Cooper, Daly, Eggman, Flora, Frazier, Friedman, Gabriel, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Holden, Jones-Sawyer, Kalra, Kamlager-Dove, Levine, Limón, Low, McCarty, Medina, Mullin, Nazarian, O'Donnell, Quirk, Quirk-Silva, Reyes, Rivas, Rodriguez, Rubio, Santiago, Mark Stone, Thurmond, Ting, Weber, Wood, Rendon
NOES: Acosta, Travis Allen, Baker, Bigelow, Brough, Caballero, Chávez, Chen, Choi, Cunningham, Dahle, Fong, Gallagher, Harper, Kiley, Lackey, Maienschein, Mathis, Mayes, Melendez, Obernolte, Patterson, Steinorth, Voepel, Waldron
NO VOTE RECORDED: Cervantes, Irwin, Muratsuchi, Salas
8/30/18 0:24:54
**** END ****
SENATE THIRD READING
STR Bill Id:SB 861
Author:(Committee on Budget and Fiscal Review)
As Amended Ver:August 14, 2018
Majority vote. Budget Bill Appropriation Takes Effect Immediately
SENATE VOTE: Vote not relevant
SUMMARY: Makes technical changes related to the 2018-19 Budget Act. Specifically, this bill:
- Includes findings and declarations related state funding and allocations for affordable housing.
- Confirms and ratifies that allocations of funds from the National Mortgage Special Deposit Fund in the 2011-12, 2012-13, and 2013-14 fiscal years were consistent with the direction given to the Director of Finance.
- Confirms and ratifies, that because those allocations were displayed in the Governor's proposed budget for the 2012-13 and 2013-14 fiscal years, and left unchanged in the budget acts adopted for the 2012-13 and 2013-14 fiscal years, the Legislature was aware of, and approved, the allocation and expenditure of funds from the National Mortgage Special Deposit Fund to offset General Fund expenditures in those fiscal years.
FISCAL EFFECT: Appropriates $25,000 from the General Fund to the Department of Finance for legal fees and costs.
COMMENTS: This budget bill amends the 2018 Budget Act, and makes changes related to the National Mortgage Settlement Fund.
Analysis Prepared by: Genevieve Morelos / BUDGET / (916) 319-2099 FN: 0004231
Date of Hearing: August 15, 2018
ASSEMBLY COMMITTEE ON BUDGET
Philip Y. Ting, Chair
SBPCA Bill Id:SB 861
Author:(Committee on Budget and Fiscal Review) – As Amended Ver:June 12, 2018
SENATE VOTE: 24-11
SUBJECT: National Mortgage Settlement Fund: Allocations
SUMMARY: Makes technical changes related to the 2018-19 Budget Act. Specifically, this bill:
- Deletes the current contents of the bill and instead, does the following:
- Includes findings and declarations.
- Confirms and ratifies that allocations of funds from the National Mortgage Special Deposit Fund in the 2011-12, 2012-13, and 2013-14 fiscal years were consistent with the direction given to the Director of Finance.
- Confirms and ratifies, that because those allocations were displayed in the Governor’s proposed budget for the 2012-13 and 2013-14 fiscal years, and left unchanged in the budget acts adopted for the 2012-13 and 2013-14 fiscal years, the Legislature was aware of, and approved, the allocation and expenditure of funds from the National Mortgage Special Deposit Fund to offset General Fund expenditures in those fiscal years.
FISCAL EFFECT: Appropriates $25,000 from the General Fund to the Department of Finance for legal fees and costs.
COMMENTS: This budget bill amends the 2018 Budget Act, and makes changes related to the National Mortgage Settlement Fund.
Analysis Prepared by: Genevieve Morelos / BUDGET / (916) 319-2099
SENATE THIRD READING
STR Bill Id:SB 861
Author:(Committee on Budget and Fiscal Review)
As Ameneded Ver:June 12, 2018
2/3 vote. Budget Bill Appropriation Takes Effect Immediately
SENATE VOTE: Vote not relevant.
SUMMARY: This is the No Place Like Home Act of 2018. Specifically, this bill:
- Includes findings and declarations that housing is a key factor for stabilization and recovery from mental illness and results in improved outcomes for individuals living with mental illness.
- Enacts the No Place Like Home Act of 2018 and provides for submission of the act to the voters at the November 6, 2018, statewide general election.
- Specifies that the service contracts between the California Health Facilities Authority (Authority) and the Department of Housing and Community Development (Development) may be single-year or multiyear contracts and provide for payments to the Department from amounts on deposit in the Supportive Housing Program Subaccount.
- Provides that any appropriation or transfer to the No Place Home from the General Fund or other funds as moneys required to be paid into the No Place Like Home Fund.
- Declares that the voters ratify as being consistent with and in furtherance of the Mental Health Services Act (MHSA).
- Includes an urgency statute and take effects immediately
COMMENT: This bill makes changes to the No Place Like Home Act of 2018.
Analysis Prepared by: Genevieve Morelos / BUDGET / (916) 319-2099 FN: 0003486
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 861 |
THIRD READING
Bill No: SB 861
Author: Committee on Budget and Fiscal Review
Introduced: 1/10/18
DIGEST:
This bill expresses the intent of the Legislature to enact statutory changes relating to the Budget Act of 2018.
ANALYSIS: Senate Bills 840 through 879, inclusive, are to be considered as vehicles for the 2018-19 Budget Trailer Bills.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
None received
OPPOSITION: (Verified 4/30/18)
None received
Prepared by: Karen Chow / SFA / (916) 651-1520
5/2/18 14:15:49
**** END ****
Discussed in Hearing
6MIN
Senate Floor
8MIN
Assembly Floor
10MIN
Assembly Standing Committee on Budget
53SEC
Assembly Standing Committee on Budget
Bill Author
Bill Co-Author(s):