This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2019.

 THIRD READING  

Bill No: AB 113

Author: Committee on Budget

Amended: 9/6/19 in Senate

Vote: 21

SENATE BUDGET & FISCAL REVIEW COMMITTEE: 12-3, 9/10/19

AYES: Mitchell, Beall, Caballero, Hurtado, Leyva, Monning, Pan, Roth, Skinner, Stern, Umberg, Wieckowski

NOES: Nielsen, Jones, Stone

NO VOTE RECORDED: Dahle, McGuire, Moorlach

ASSEMBLY FLOOR: Not relevant

SUBJECT: Housing

SOURCE: Author

DIGEST:

This bill provides for technical statutory changes necessary to enact the housing and homelessness-related provisions of the Budget Act of 2019, and provides intent language related to recent housing-related court decisions.

ANALYSIS: This bill makes the following statutory changes:

1. States the Legislature’s intent to establish a trust to manage $331 million in state funds that are court-ordered to be directed to provide borrower relief and legal aid to homeowners and renters. Provides for the transfer of the $331 million to the National Mortgage Special Deposit Fund.
2. Makes a variety of changes to the state’s housing element law. Specifically, this bill:
   1. Clarifies that the Attorney General may request that the court issue an order or judgment directing a local jurisdiction to bring its housing element into substantial compliance if the court finds that a local jurisdiction is not compliant with housing element law.
   2. Clarifies that if a court finds that a local jurisdiction’s housing element substantially complies with state housing element law, then the court finding has the same force and effect, for the purposes of financial assistance and various state incentives that require a compliant housing element, as a finding by the Department of Housing and Community Development (HCD) that the housing element substantially complies with state housing element law.
   3. Replaces the standard that an agent of the court may “be appointed with all the powers” necessary with the standard that an agent of the court may “take all the governmental actions” necessary to bring the jurisdiction’s housing element into substantial compliance. Clarifies that the appointment and actions shall not limit a court’s discretion to apply any and all remedies in an action or special proceeding for a violation of housing element law.
   4. Clarifies that HCD shall offer a jurisdiction the opportunity for two meetings in person or via telephone once the jurisdiction has been included on HCD’s list of jurisdictions with non-compliant housing elements if the jurisdiction has not previously received notice of its inclusion.
   5. Increases the amount of time, from within 30 days to within 90 days, of a request for review, by which HCD shall issue written findings as to whether the housing element of a jurisdiction that was previously found to be non-compliant has been found by HCD to be in substantial compliance with state housing element law. Clarifies that a jurisdiction may not request this review, or bring an action in court related to HCD’s determination, if the jurisdiction is the subject of a lawsuit for housing element compliance.
3. Adds the Council of San Benito County Governments as one of the councils of governments included in the central coast multiagency working group identified in the Local Government Planning Support Grants program.
4. Allows a council of governments or the fiscal agent of a multiagency working group to request up to 25 percent of funding available to it under the Local Government Planning Support Grants program, in advance of requesting the remainder of the funds, to perform work related to the sixth regional housing needs allocation process beginning on October 1, 2019. Includes the development of an education and outreach strategy in the work that may be supported by those funds. Requires HCD to award the funds within 30 days of receiving an application.
5. Appropriates $100,000 to the Department of Finance to study the most effective way to establish and manage a trust for the National Mortgage Settlement funds described above.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

SUPPORT: (Verified 9/10/19)

None received

OPPOSITION: (Verified 9/10/19)

None received

Prepared by: James Hacker / B. & F.R. / 916-651-4103

9/11/19 20:26:21

**** END ****

SENATE COMMITTEE ON

Senator Holly Mitchell, Chair

2019 - 2020 Regular

Bill No: Hearing Date: September 10, 2019

Subject: Housing

Summary:

Provides for technical statutory changes necessary to enact the housing and homelessness-related provisions of the Budget Act of 2019, and provides intent language related to recent housing-related court decisions.

Proposed Law:

This bill makes the following statutory changes:

1. States the Legislature’s intent to establish a trust to manage $331 million in state funds that are court-ordered to be directed to provide borrower relief and legal aid to homeowners and renters. Provides for the transfer of the $331 million to the National Mortgage Special Deposit Fund.
2. Makes a variety of changes to the state’s housing element law. Specifically, this bill:
   1. Clarifies that the Attorney General may request that the court issue an order or judgment directing a local jurisdiction to bring its housing element into substantial compliance if the court finds that a local jurisdiction is not compliant with housing element law.
   2. Clarifies that if a court finds that a local jurisdiction’s housing element substantially complies with state housing element law, then the court finding has the same force and effect, for the purposes of financial assistance and various state incentives that require a compliant housing element, as a finding by HCD that the housing element substantially complies with state housing element law.
   3. Replaces the standard that an agent of the court may “be appointed with all the powers” necessary with the standard that an agent of the court may “take all the governmental actions” necessary to bring the jurisdiction’s housing element into substantial compliance. Clarifies that the appointment and actions shall not limit a court’s discretion to apply any and all remedies in an action or special proceeding for a violation of housing element law.
   4. Clarifies that HCD shall offer a jurisdiction the opportunity for two meetings in person or via telephone once the jurisdiction has been included on HCD’s list of jurisdictions with non-compliant housing elements if the jurisdiction has not previously received notice of its inclusion.
   5. Increases the amount of time, from within 30 days to within 90 days, of a request for review, by which HCD shall issue written findings as to whether the housing element of a jurisdiction that was previously found to be non-compliant has been found by HCD to be in substantial compliance with state housing element law. Clarifies that a jurisdiction may not request this review, or bring an action in court related to HCD’s determination, if the jurisdiction is the subject of a lawsuit for housing element compliance.
3. Adds the Council of San Benito County Governments as one of the councils of governments included in the central coast multiagency working group identified in the Local Government Planning Support Grants program.
4. Allows a council of governments or the fiscal agent of a multiagency working group to request up to 25 percent of funding available to it under the Local Government Planning Support Grants program, in advance of requesting the remainder of the funds, to perform work related to the sixth regional housing needs allocation process beginning on October 1, 2019. Includes the development of an education and outreach strategy in the work that may be supported by those funds. Requires HCD to award the funds within 30 days of receiving an application.
5. Appropriates $100,000 to the Department of Finance to study the most effective way to establish and manage a trust for the National Mortgage Settlement funds described above.

Support:

None on file.

Opposed:

None on file.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 113

Author:(Ting)

As Introduced Ver:December 3, 2018

Majority vote. Budget Bill Appropriation Takes Effect Immediately

SUMMARY:

This bill expresses the intent of the Legislature to enact statutory changes relating to the Budget Act of 2019.

Major Provisions

COMMENTS:

According to the Author:

Arguments in Support:

Arguments in Opposition:

FISCAL COMMENTS:

VOTES:

UPDATED:

VERSION: December 3, 2018

CONSULTANT: Christian Griffith / BUDGET / (916) 319-2099 FN: 0000156