AB 1232: Affordable housing: weatherization.
- Session Year: 2019-2020
- House: Assembly
- Latest Version Date: 2019-10-11
Existing law requires the Department of Community Services and Development to, among other things, administer the Energy Efficiency Low-Income Weatherization Program and expend moneys appropriated by the Legislature for the proposes purposes of the program.
This bill would require the Department of Community Services and Development to coordinate with the California Energy Commission and the State Department of Public Healths Office of Health Equity, by January 1, 2021, to identify best practices from model programs and funding mechanisms, and provide a recommended action plan.
Existing law requires the State Energy Resources and Conservation Commission to, among other things, establish annual targets for statewide energy efficiency savings and demand reduction, including specific strategies for progress towards maximizing savings in disadvantaged communities served by the weatherization program.
This bill would, in addition to the commissions recommendations, require the department to provide an assessment of the program. The bill would make other conforming changes.
Existing law, the California Global Warming Solutions Act of 2006, designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation. Existing law requires moneys from the fund to be allocated for the purpose of reducing greenhouse gas emissions in this state and satisfying other purposes, if applicable and to the extent feasible, and authorizes specified investments if the investment furthers the regulatory purposes of the act and is consistent with law.
This bill would authorize an eligible expenditure of moneys appropriated to the Department of Community Services and Development from the Greenhouse Gas Reduction Fund to occur over multiple fiscal years and authorize the department to make multiyear funding commitments over a period of more than one fiscal year.
(a)The department shall develop and administer the Energy Efficiency Low-Income Weatherization Program and expend moneys appropriated by the Legislature for the proposes purposes of the program.
(b)The department may develop requirements, guidelines, and subgrantee contract provisions for the program. program, including those necessary or desirable to ensure the effective implementation of Sections 12087.9 and 12087.10.
(c)Before a subgrantee contract is executed for the provision of local service, the department shall do both of the following:
(1)No less than 30 days before finalization of the program guidelines, post the draft program guidelines on the departments Internet Web site. internet website.
(2)Hold a public hearing to obtain public input on the draft program guidelines with notice of the hearing published prominently on the departments Internet Web site internet website no less than 15 days before the hearing.
(d)Chapter 3.5 (commencing with Section 11340) of Part 1 does not apply to the development and adoption of program requirements, guidelines, and subgrantee contract provisions pursuant to this section.
SECTION 1.SEC. 2.Section 12087.9 is added to the Government Code, to read:12087.9.By January 1, 2021, the Department of Community Services and Development shall coordinate with the California Energy Commission and the State Department of Public Healths Office of Health Equity to identify best practices from model programs and funding mechanisms, and provide a recommended action plan to do all of the following:
(a)Ensure greater cross-referral between public health agencies, the State Department of Public Healths Office of Health Equity, and the Low-Income Weatherization Program for comprehensive energy and healthy home improvements for low-income multifamily residents in disadvantaged communities.
(b)Promote projects that include energy improvements that do all of the following:
(1)Provide net financial benefits, inclusive of rent and utility costs.
(2)Provide health benefits to tenants in low-income multifamily properties.
(3)Provide increased indoor air quality and address asthma or respiratory issues triggered by mold and moisture.
(c)Create mechanisms for enforcing state energy upgrade program requirements to maintain the affordability of benefiting units to low-income tenants.
SEC. 2.SEC. 3.Section 12087.10 is added to the Government Code, to read:12087.10.The department, in coordination with relevant agencies, shall provide an assessment of the effectiveness of the program on or before January 1, 2023. The assessment shall contain all of the following:
(a)A compilation of actual rates of rent increases and of tenant long-term relocation or eviction, for any reason, after energy upgrades received with the goal of better enforcing or adjusting affordability contracts and measures.
(b)A summary of the total number of properties that are not regulated by deed restrictions or other legally binding provisions that are below market rate multifamily affordable housing participating in the program, the marketing and outreach efforts of the department or the appropriate administrator pursued for this market segment, and the reasons given for nonparticipation, if any.
(c)In coordination with participating public health programs, a database of conditions found in homes that impact or could impact health negatively encountered when doing energy or health audits to track neighborhood hotspots and provide data for environmental screening and social determinants of health tools.
SEC. 3.SEC. 4.Section 39712 of the Health and Safety Code is amended to read:39712.(a)(1)It is the intent of the Legislature that moneys shall be appropriated from the fund only in a manner consistent with the requirements of this chapter and Article 9.7 (commencing with Section 16428.8) of Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code.
(2)The state shall not approve allocations for a measure or program using moneys appropriated from the fund except after determining, based on the available evidence, that the use of those moneys furthers the regulatory purposes of Division 25.5 (commencing with Section 38500) and is consistent with law. If any expenditure of moneys from the fund for any measure or project is determined by a court to be inconsistent with law, the allocations for the remaining measures or projects shall be severable and shall not be affected.
(3)An eligible expenditure of moneys appropriated to the Department of Community Services and Development may occur over multiple fiscal years and the department may make multiyear funding commitments over a period of more than one fiscal year.
(b)Moneys shall be used to facilitate the achievement of reductions of greenhouse gas emissions in this state consistent with Division 25.5 (commencing with Section 38500) and, where applicable and to the extent feasible:
(1)Maximize economic, environmental, and public health benefits to the state.
(2)Foster job creation by promoting in-state greenhouse gas emissions reduction projects carried out by California workers and businesses.
(3)Complement efforts to improve air quality.
(4)Direct investment toward the most disadvantaged communities and households in the state.
(5)Provide opportunities for businesses, public agencies, Native American tribes in the state, nonprofits, and other community institutions to participate in and benefit from statewide efforts to reduce greenhouse gas emissions.
(6)Lessen the impacts and effects of climate change on the states communities, economy, and environment.
(c)Moneys appropriated from the fund may be allocated, consistent with subdivision (a), for the purpose of reducing greenhouse gas emissions in this state through investments that may include, but are not limited to, any of the following:
(1)Funding to reduce greenhouse gas emissions through energy efficiency, clean and renewable energy generation, distributed renewable energy generation, transmission and storage, and other related actions, including, but not limited to, at public universities, state and local public buildings, and industrial and manufacturing facilities.
(2)Funding to reduce greenhouse gas emissions through the development of stateoftheart systems to move goods and freight, advanced technology vehicles and vehicle infrastructure, advanced biofuels, and lowcarbon and efficient public transportation.
(3)Funding to reduce greenhouse gas emissions associated with water use and supply, land and natural resource conservation and management, forestry, and sustainable agriculture.
(4)Funding to reduce greenhouse gas emissions through strategic planning and development of sustainable infrastructure projects, including, but not limited to, transportation and housing.
(5)Funding to reduce greenhouse gas emissions through increased in-state diversion of municipal solid waste from disposal through waste reduction, diversion, and reuse.
(6)Funding to reduce greenhouse gas emissions through investments in programs implemented by local and regional agencies, local and regional collaboratives, Native American tribes in the state, and nonprofit organizations coordinating with local governments.
(7)Funding research, development, and deployment of innovative technologies, measures, and practices related to programs and projects funded pursuant to this chapter.
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Date
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Status
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|---|---|
| Oct 11, 2019 | Chaptered by Secretary of State - Chapter 754, Statutes of 2019. |
| Oct 11, 2019 | Approved by the Governor. |
| Sep 17, 2019 | Enrolled and presented to the Governor at 3:30 p.m. |
| Sep 9, 2019 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 69. Noes 5.). |
| Sep 6, 2019 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 8 pursuant to Assembly Rule 77. |
| Sep 6, 2019 | Read third time. Passed. Ordered to the Assembly. |
| Sep 3, 2019 | Read second time. Ordered to third reading. |
| Aug 30, 2019 | From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 30). |
| Aug 12, 2019 | In committee: Referred to APPR. suspense file. |
| Jul 11, 2019 | Withdrawn from committee. |
| Jul 11, 2019 | Read second time and amended. Re-referred to Com. on EQ. |
| Jul 10, 2019 | From committee: Amend, and do pass as amended and re-refer to Com. on EQ. (Ayes 8. Noes 0.) (July 9). |
| Jun 28, 2019 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD. |
| Jun 24, 2019 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Jun 11, 2019 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD. |
| Jun 6, 2019 | Referred to Coms. on JUD. and EQ. |
| May 24, 2019 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 23, 2019 | Read third time. Passed. Ordered to the Senate. |
| May 20, 2019 | Read second time. Ordered to third reading. |
| May 16, 2019 | From committee: Do pass. (Ayes 14. Noes 4.) (May 16). |
| May 8, 2019 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| Apr 29, 2019 | Re-referred to Com. on APPR. |
| Apr 25, 2019 | Read second time and amended. |
| Apr 24, 2019 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 2.) (April 22). |
| Apr 22, 2019 | Re-referred to Com. on NAT. RES. |
| Apr 11, 2019 | From committee chair, with author's amendments: Amend, and re-refer to Com. on NAT. RES. Read second time and amended. |
| Mar 27, 2019 | Re-referred to Com. on NAT. RES. |
| Mar 26, 2019 | From committee chair, with author's amendments: Amend, and re-refer to Com. on NAT. RES. Read second time and amended. |
| Mar 25, 2019 | Referred to Com. on NAT. RES. |
| Feb 22, 2019 | From printer. May be heard in committee March 24. |
| Feb 21, 2019 | Read first time. To print. |
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Date
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Description
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Location
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Votes
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|---|---|---|---|---|
| Sep 9, 2019 | AB 1232 Gloria Concurrence in Senate Amendments | Assembly Floor |
Passed |
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| Sep 6, 2019 | Assembly 3rd Reading AB1232 Gloria et al. By Monning | Senate Floor |
Passed |
|
| Aug 30, 2019 | Do pass as amended | Senate Standing Committee on Appropriations |
Passed |
|
| Aug 12, 2019 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jul 9, 2019 | Do pass as amended, but first amend, and re-refer to the Committee on [Environmental Quality] | Senate Standing Committee on Judiciary |
Passed |
|
| May 23, 2019 | AB 1232 Gloria Assembly Third Reading | Assembly Floor |
Passed |
|
| May 16, 2019 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 22, 2019 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Natural Resources |
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.
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 1232
Author:(Gloria)
As Amended Ver:August 30, 2019
Majority vote
SUMMARY:
This bill proposes three things in relation to the operation of the Low-Income Weatherization Program (LIWP): 1) a study of impacts of the Program on rental rates, 2) greater collaboration between government health and environmental agencies; and, 3) clarification of funding distribution timelines.
The Senate Amendments:
- Require the Department of Community Service and Development (CSD) to develop and administer the LIWP and expend moneys appropriated by the Legislature for the proposes of the Program.
- Authorize CSD to develop requirements, guidelines, and subgrantee contract provisions for the LIWP, as specified.
- Specify that CSD, not the Department of Housing and Community Development, in coordination with the California Energy Commission and the State Department of Public Health's Office of Health Equity identify best practices from model programs and funding mechanisms and recommend an action plan.
- Remove a requirement that the assessment conducted by CSD on the effectiveness of the program be focused on the targeting and implementation of energy efficiency projects in unregulated, below market rate multifamily affordable housing and instead require that the assessment include a summary of the total number of properties that are not regulated by deed restrictions or other legally binding provisions that are below market rate multifamily affordable housing participant in the program, the marketing and outreach efforts of CSD or the appropriate administrator pursued for this market segment, and the reasons given for nonparticipation, if any.
- Require that the assessment include a database of conditions found in homes that impact or could impact health negatively.
- Remove the requirement that any dwelling, housing unit, or multiunit residential structure that receives assistance from the LIWP remain low-income housing for not less than 10 years.
- Remove the requirement that CSD develop standards to ensure that the LIWP-funded improvements provide net financial benefits to tenants and involuntary displacement.
COMMENTS:
LIWP funds energy efficiency upgrades and solar for both low-income single-family households and multi-family affordable housing at no cost to residents. LIWP is funded by the Greenhouse Gas Reduction Fund. LIWP is designed with the primary goal of reducing greenhouse gas (GHG) emissions by saving energy and generating clean renewable energy. It is also intended to reduce residential energy expenses for low-income households. According to CSD, LIWP helps cushion the impact of climate change on vulnerable communities, making it more affordable for low-income households to keep their homes cool and comfortable at a lower cost – whether through energy efficient air conditioning or improved insulation – and protect children and seniors from the health impacts of higher temperatures.
This bill is intended to prevent landowners of low-income properties from using public funds to upgrade their properties, then raising rents because the properties are of greater value due to the improvements or evicting tenants in order to raise rents on new tenants. The sponsors of the bill, the Asian Pacific Environmental Network and the California Environmental Justice Alliance, want to ensure this low-income program and the public monies it distributes benefit low-income tenants, not solely property owners, who are likely not low-income.
According to the Author:
The [LIWP] was created to provide low-income households with energy efficiency upgrades that help the state meet its climate goals while also improving living conditions for impacted communities. It has successfully invested almost $200 million into single and multi-family homes across the state. However, it is important to protect against any unintended consequences and ensure that we are investing state dollars responsibly. AB 1232 will require an assessment of LIWP to understand the types of housing participating in the program and identify any negative impacts to tenants including unsustainable rent increases, evictions, or displacement. Additionally, AB 1232 will require inter-agency collaboration between LIWP and public health programs that provide healthy home upgrades to improve overall habitability of low-income units. Decarbonizing buildings and increasing energy efficiency is critical to reaching our state's climate and energy targets. AB 1232 will protect against any inadvertent, adverse outcomes for renters while verifying that state dollars are spent as they were intended.
Arguments in Support:
None on the current version of this bill.
Arguments in Opposition:
None
FISCAL COMMENTS:
According to the Senate Appropriations Committee:
- Department of Public Health reports one-time costs of $140,000, with ongoing annual costs of $138,000 through January 1, 2023, for 1.0 Health Program Specialist I to coordinate with CSD on developing the action plan, researching and identifying best practices, providing and promoting systems of cross-referral between energy efficiency and public health programs, providing technical expertise on health benefits of energy improvements and mechanism to maintain affordability, and coordinating with CSD on creating a database of housing conditions that impact health. (General Fund)
- CSD reports unknown but likely-absorbable workload costs related to this measure. As CSD is funded primarily by federal funds that are earmarked for specific uses, costs to implement this measure would be sourced elsewhere, likely from the Greenhouse Gas Reduction Fund (GGRF). (Special fund)
- California Energy Commission anticipates minor and absorbable costs to implement AB 1232.
VOTES:
ASM NATURAL RESOURCES: 7-2-2
YES: Friedman, Chau, Eggman, Limón, McCarty, Muratsuchi, Mark Stone
NO: Flora, Melendez
ABS, ABST OR NV: Cristina Garcia, Mathis
ASM APPROPRIATIONS: 14-4-0
YES: Gonzalez, Bloom, Bonta, Calderon, Carrillo, Chau, Eggman, Gabriel, Eduardo Garcia, Maienschein, Obernolte, Petrie-Norris, Quirk, Robert Rivas
NO: Bigelow, Brough, Diep, Fong
ASSEMBLY FLOOR: 58-18-4
YES: Aguiar-Curry, Arambula, Bauer-Kahan, Berman, Bloom, Boerner Horvath, Bonta, Burke, Calderon, Carrillo, Cervantes, Chau, Chiu, Chu, Cooper, Daly, Eggman, Frazier, Friedman, Gabriel, Gipson, Gloria, Gonzalez, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager‑Dove, Levine, Limón, Low, Maienschein, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O'Donnell, Obernolte, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Weber, Wicks, Wood, Rendon
NO: Bigelow, Brough, Choi, Cunningham, Dahle, Diep, Flora, Fong, Gallagher, Gray, Kiley, Lackey, Mathis, Mayes, Melendez, Patterson, Voepel, Waldron
ABS, ABST OR NV: Chen, Cooley, Cristina Garcia, Eduardo Garcia
SENATE FLOOR: 39-0-1
YES: Allen, Archuleta, Atkins, Bates, Beall, Borgeas, Bradford, Caballero, Chang, Dahle, Dodd, Durazo, Galgiani, Glazer, Lena Gonzalez, Grove, Hertzberg, Hill, Hueso, Hurtado, Jackson, Leyva, McGuire, Mitchell, Monning, Moorlach, Morrell, Nielsen, Pan, Portantino, Roth, Rubio, Skinner, Stern, Stone, Umberg, Wieckowski, Wiener, Wilk
ABS, ABST OR NV: Jones
UPDATED:
VERSION: August 30, 2019
CONSULTANT: Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0002181
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 1232 |
THIRD READING
Bill No: AB 1232
Amended: 8/30/19 in Senate
SENATE JUDICIARY COMMITTEE: 8-0, 7/9/19
AYES: Jackson, Durazo, Lena Gonzalez, Jones, Monning, Stern, Umberg, Wieckowski
NO VOTE RECORDED: Borgeas
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/30/19
AYES: Portantino, Bates, Bradford, Durazo, Hill, Jones, Wieckowski
ASSEMBLY FLOOR: 58-18, 5/23/19 - See last page for vote
SUBJECT: Affordable housing: weatherization
SOURCE: Asian Pacific Environmental Network
California Environmental Justice Alliance
DIGEST:
This bill proposes three things in relation to operation of the Low-Income Weatherization Program (LIWP): (1) a study of impacts of the Program on rental rates; (2) greater collaboration between government health and environmental agencies; and (3) clarification of funding distribution timelines.
Existing law:
- Directs the Department of Community Service and Development (CSD) to develop and administer the Energy Efficiency Low-Income Weatherization Program and expend moneys appropriated by the Legislature for the proposes [sic] of the Program. (Gov. Code § 12087.5(a).)
- Authorizes CSD to develop requirements, guidelines, and subgrantee contract provisions for the Program. (Gov. Code § 12087.5(b).)
- Specifies the intent of the Legislature that Greenhouse Gas Reduction Fund (GGRF) money shall only be appropriated in a specified manner. (Health & Saf. Code § 39712(a)(1).)
This bill:
- Directs CSD, by January 1, 2021, to coordinate with the California Energy Commission and the State Department of Public Health’s (DPH) Office of Health Equity to identify best practices from model programs and funding mechanisms, and provide a recommended action plan to do all of the following:
- ensure greater cross-referrals, as specified;
- promote projects that include energy improvements, as specified; and
- create mechanisms for enforcing state energy upgrade program requirements to maintain the affordability of benefiting units to low-income tenants.
- Directs CSD, in coordination with relevant agencies, to provide an assessment of the effectiveness of the program on or before January 1, 2023. The assessment shall contain all of the following:
- a compilation of actual rates of rent increases and of tenant long-term relocation or eviction, for any reason, after energy upgrades received with the goal of better enforcing or adjusting affordability contracts and measures;
- a summary of the total number of properties that are not regulated by deed restrictions or other legally binding provisions that are below market rate multifamily affordable housing buildings and that are participating in the program; the marketing and outreach efforts of the department or the appropriate administrator pursued for this market segment; and the reasons given for nonparticipation, if any; and
- in coordination with participating public health programs, a database of conditions found in homes that impact or could impact health negatively encountered when doing energy or health audits to track neighborhood hotspots and provide data for environmental screening and social determinants of health tools.
- Clarifies that an eligible expenditure of GGRF money appropriated to the CSD may occur over multiple fiscal years and CSD may make multiyear funding commitments over a period of more than one fiscal year.
- Makes other conforming and technical changes.
Background
- LIWP. LIWP is administered by CSD, which describes the Program as follows:
California’s Low-Income Weatherization Program (LIWP) provides low-income households with solar photovoltaic (PV) systems and energy efficiency upgrades at no cost to residents. LIWP is the only program of its kind in California that focuses exclusively on serving low-income households with solar PV and energy efficiency upgrades at no cost. The program reduces greenhouse gas emissions and household energy costs by saving energy and generating clean renewable power. LIWP currently operates three program components: Multi-Family, Community Solar, and Farmworker Housing.
LIWP is designed with the primary goal of reducing greenhouse gas emissions by saving energy and generating clean renewable energy for low-income single-family households and multi-family affordable housing. But just as importantly, the program reduces residential energy expenses for low-income households. These improvements also improve household conditions while reducing living expenses for residents – strengthening their economic security – and contribute to the health of communities through improved air quality. They also help lower operating costs for affordable housing operators, helping to preserve valuable below-market housing for low-income families.
LIWP plays an important role in ensuring that all Californians have the opportunity to benefit from the State’s Climate Investments and program services. LIWP also helps cushion the impact of climate change on vulnerable communities, making it more affordable for low-income households to keep their homes cool and comfortable at a lower cost – whether through energy efficient air conditioning or improved insulation – and protect children and seniors from the health impacts of higher temperatures. And, as many low-income Californians are already struggling to make ends meet – and spending a higher proportion of their income on housing than ever before – LIWP can help by lowering utility bills and freeing up limited disposable income for other critical expenses.[1]
- Questions about the impact of LIWP upgrades on the cost of housing. LIWP services are available to landlords who rent out their property to low-income tenants. In the landlord/tenant context, LIWP’s goal of providing financial assistance to low-income households through utility bill savings can be undermined if, in the wake of the LIWP upgrades, the landlord proceeds to raise the rent. Recognizing this potential problem, CDCSD has developed guidelines for the LIWP program that are intended to prevent landlords from raising rents significantly in the years immediately after their property undergoes LIWP renovations.
Under these guidelines, in order to receive an LIWP upgrade, owners of properties consisting of anywhere from one to four dwellings must promise not to raise the rent on account of the LIWP upgrades (though they still can raise the rent for any other reason). There does not appear to be any mechanism to monitor whether landlords stick to this promise, however, and, beyond the threat that they will not be permitted to received further LIWP services in the future, it is not clear that landlords would face any consequence for raising the rent in spite of the promise.
Owners of multi-family properties with more than five units, meanwhile, must sign an “Affordability Covenant,” in order to receive LIWP upgrades to their property. The basis on which large multi-family dwellings qualify for LIWP often make it easier to ensure that rents do not go up significantly in the wake of LIWP upgrades. Where a building qualifies for LIWP basis on the fact that the property is under a deed restriction to provide at least a certain number of affordable units, the deed restriction itself acts to ensure that rents will not rise even when LIWP upgrades occur. Where a large multifamily dwelling qualifies for LIWP on some other basis, however, or where the deed restriction on the property expires, tenants may still be exposed to rent increases that erase whatever savings they would have realized as a result of the LIWP upgrades. In addition, it is not clear what happens to a landlord’s promise not to raise rents if the property gets sold to a new owner. Leases run with the land, but if the landlord’s promise not to raise the rent is not in the form of a deed restriction, a subsequent owner may not be beholden to it.
In order to understand what is actually happening on the ground and whether or not tenants are receiving the full benefit of LIWP upgrades as intended, this bill directs CSD to undertake an assessment of the Program. The assessment would examine, among other things, how often rent increases are happening in the wake of LIWP upgrades and what justification landlords are using. The results of this assessment may then inform CSD and the Legislature about what policy changes may be needed, if any.
- Promotion of cross-referral best practices. Poor housing conditions can cause and/or exacerbate poor health. Where moisture can easily penetrate the interior of dwelling, for example, it can lead to mold growth. The presence of mold, in turn, is associated with increased rates of asthma.[2] Accordingly, in addition to making homes more comfortable and lowering utility bills, weatherization upgrades can have beneficial health impacts, as well.
With this in mind, cross-referrals between public health officials and the LIWP program make good policy sense. The author of this bill states that a number of model cross-referral and collaboration programs of this kind already exist. To encourage more widespread adoption of these models, this bill would charge CSD with convening its counterparts at the California Energy Commission and the DPH’s Office of Health Equity to develop an action plan. That action plan would include ensuring greater cross-referrals, promotion of projects that, in addition to providing health and financial benefits to tenants generally, also increase indoor air quality and address respiratory issues specifically. The action plan would also create mechanisms to try to enforce the housing affordability requirements associated with LIWP upgrades.
- Facilitation of multi-year projects. The final component of this bill makes a technical clarification regarding appropriation and expenditure of funds for LIWP purposes. LIWP is funded by GGRF monies. Current law places strict requirements on how GGRF funds can be appropriated. (Health & Saf. Code § 39712(a)(1).) The author and proponents of this bill contend that it is not clear whether LIWP can commit to multi-year weatherization projects under the current formulation. The bill would clarify this point by inserting language into the statute governing GGRF appropriations which makes it clear that such commitments are permissible.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee:
- Department of Public Health (DPH): The department reports one-time costs of $140,000, with ongoing annual costs of $138,000 through January 1, 2023, for 1.0 Health Program Specialist I to coordinate with CSD on developing the action plan, researching and identifying best practices, providing and promoting systems of cross-referral between energy efficiency and public health programs, providing technical expertise on health benefits of energy improvements and mechanism to maintain affordability, and coordinating with CSD on creating a database of housing conditions that impact health. (General Fund)
- CSD: The department reports unknown but likely-absorbable workload costs related to this measure. As CSD is funded primarily by federal funds that are earmarked for specific uses, costs to implement this measure would be sourced elsewhere, likely from the Greenhouse Gas Reduction Fund (GGRF). (Special fund*)
- California Energy Commission (CEC): The commission anticipates minor and absorbable costs to implement AB 1232.
*GGRF
Asian Pacific Environmental Network (co-source)
California Environmental Justice Alliance (co-source)
Alliance of Californians for Community Empowerment Action
AYPAL
California Housing Partnerships Corporation
California League of Conservation Voters
Carbon Cycle Institute
Causa Justa : Just Cause
Center for Biological Diversity
Community Action to Fight Asthma
East Bay Community Law Center
Ella Baker Center
Environment California
Environmental Defense Fund
Greenlining Institute
Laotian American National Alliance
Little Tokyo Service Center
Local Clean Energy Alliance
Movement Generation Justice and Ecology Project
National Housing Law Project
Natural Resources Defense Council
Neighborhood Legal Services of Los Angeles County
Oakland Rising
Parent Voices
PODER San Francisco
Public Health Justice Collective
Regional Asthma Management Prevention
Rising Sun Center for Opportunity
Tenants Together
Union of Concerned Scientists
OPPOSITION: (Verified 8/30/19)
None received
ARGUMENTS IN SUPPORT: According to the author:
The Low-Income Weatherization Program (LIWP) was created to provide low-income households with energy efficiency upgrades that help the state meet its climate goals while also improving living conditions for impacted communities. It has successfully invested almost $200 million into single and multi-family homes across the state. Yet some questions and potential areas for improvement remain. AB 1232 will require a study of whether property owners are keeping rents affordable in the wake of receiving LIWP upgrades, increase cross-referrals with public health stakeholders to improve habitability and conditions of homes, and clarify the timelines associated with funding of LIWP.
As sponsor of the bill, the Asian Pacific Environmental Network and the California Environmental Justice Alliance, along with 24 co-signatories write:
AB 1232 is an opportunity to advance equitable energy and health services in areas most disproportionately affected by environmental burdens and poor housing quality by expanding LIWP in key ways, while studying potential unintended consequences of green investments without anti-displacement protections. Assessing the rates of rents and relocation occurring under the program over time assists the intention of the program in serving low-income residents and protecting their ability to enjoy the benefits of the program over time.
ASSEMBLY FLOOR: 58-18, 5/23/19
AYES: Aguiar-Curry, Arambula, Bauer-Kahan, Berman, Bloom, Boerner Horvath, Bonta, Burke, Calderon, Carrillo, Cervantes, Chau, Chiu, Chu, Cooper, Daly, Eggman, Frazier, Friedman, Gabriel, Gipson, Gloria, Gonzalez, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Levine, Limón, Low, Maienschein, McCarty, Medina, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Weber, Wicks, Wood, Rendon
NOES: Bigelow, Brough, Choi, Cunningham, Dahle, Diep, Flora, Fong, Gallagher, Gray, Kiley, Lackey, Mathis, Mayes, Melendez, Patterson, Voepel, Waldron
NO VOTE RECORDED: Chen, Cooley, Cristina Garcia, Eduardo Garcia
Prepared by: Timothy Griffiths / JUD. / (916) 651-4113
9/3/19 9:06:32
**** END ****
Low-Income Weatherization Program, California Department of Community Services and Development https://www.csd.ca.gov/Pages/Low-Income-Weatherization-Program.aspx (as of Jul. 1, 2019). ↑
Fields, Household Molds Linked to Childhood Asthma (Aug. 20, 2012) National Institutes of Health https://www.nih.gov/news-events/nih-research-matters/household-molds-linked-childhood-asthma (as of Jul. 1, 2019). ↑
SENATE COMMITTEE ON APPROPRIATIONS
Senator Anthony Portantino, Chair
2019 - 2020 Regular Session
AB 1232 (Gloria) - Affordable housing: weatherization
Version: July 11, 2019 | Policy Vote: JUD. 8 - 0 |
Urgency: No | Mandate: No |
Hearing Date: August 30, 2019 | Consultant: Shaun Naidu |
*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on August 30, 2019
Bill Summary:
AB 1232 would require the Department of Community Services and Development (CSD) to identify best practices and provide a recommended action plan related to the Low-Income Weatherization Program (LIWP), as specified, and to provide an assessment of the program. It also would allow CSD to make multiyear funding commitments over a one-year period for specified expenditures.
Fiscal Impact:
- Department of Public Health: The department reports one-time costs of $140,000, with ongoing annual costs of $138,000 through January 1, 2023, for 1.0 Health Program Specialist I to coordinate with CSD on developing the action plan, researching and identifying best practices, providing and promoting systems of cross-referral between energy efficiency and public health programs, providing technical expertise on health benefits of energy improvements and mechanism to maintain affordability, and coordinating with CSD on creating a database of housing conditions that impact health. (General Fund)
- CSD: The department reports unknown but likely-absorbable workload costs related to this measure. As CSD is funded primarily by federal funds that are earmarked for specific uses, costs to implement this measure would be sourced elsewhere, likely from the Greenhouse Gas Reduction Fund (GGRF). (Special fund*)
- California Energy Commission: The commission anticipates minor and absorbable costs to implement AB 1232.
*GGRF
Author Amendments:
Allow CSD to develop requirements, guidelines, and subgrantee contract provisions for the LIWP that includes those necessary or desirable to ensure the effective implementation of the provisions of this measure.
-- END --
SENATE COMMITTEE ON
Senator Anthony Portantino, Chair
2019 - 2020 Regular Session
AB 1232 (Gloria) - Affordable housing: weatherization
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
Bill Summary:
AB 1232 would require the Department of Community Services and Development (CSD) to identify best practices and provide a recommended action plan related to the Low-Income Weatherization Program (LIWP), as specified, and to provide an assessment of the program. It also would allow CSD to make multiyear funding commitments over a one-year period for specified expenditures.
Fiscal Impact:
- Department of Public Health (DPH): The department reports one-time costs of $140,000, with ongoing annual costs of $138,000 through January 1, 2023, for 1.0 Health Program Specialist I to coordinate with CSD on developing the action plan, researching and identifying best practices, providing and promoting systems of cross-referral between energy efficiency and public health programs, providing technical expertise on health benefits of energy improvements and mechanism to maintain affordability, and coordinating with CSD on creating a database of housing conditions that impact health. (General Fund)
- CSD: The department reports unknown but likely-absorbable workload costs related to this measure. As CSD is funded primarily by federal funds that are earmarked for specific uses, costs to implement this measure would be sourced elsewhere, likely from the Greenhouse Gas Reduction Fund (GGRF). (Special fund*)
- California Energy Commission (CEC): The commission anticipates minor and absorbable costs to implement AB 1232.
*GGRF
Background:
The Department of Community Services and Development is charged with administering LIWP. The program uses GGRF moneys to subsidize energy upgrades to the homes of low-income Californians, at no cost to the resident. Subsidies cover a range of things, from the comparatively small (such as fitting light fixtures with LED bulbs) to more costly endeavors (like replacing outdated, inefficient appliances and the installation of solar panels). The goal of LIWP is to achieve savings on utility bills for the occupants while improving local environmental conditions and reducing overall energy consumption.
Proposed Law:
This bill would:
- Require CSD to coordinate with CEC and DPH’s Office of Health Equity to, by January 1, 2021, identify best practices from model programs and funding mechanisms and to provide a recommended action plan for LIWP.
- Require CSD, in coordination with relevant agencies, to provide an assessment of the impact of LIWP on the cost of renting by January 1, 2023, as specified.
- Allow an eligible expenditure of moneys appropriated to CSD from the GGRF to occur over multiple fiscal years and allow CSD to make multiyear funding commitments over a period of more than one fiscal year.
Related Legislation:
AB 1088 (Eggman, 2017) would have increased access to various existing distributed energy resource and water programs, to the benefit of multifamily residential properties and their residents, especially low-income residents of such properties. AB 1088 was held on the Suspense File of this Committee.
AB 2715 (E. Garcia, 2016) would have directed CSD to develop and administer an Agricultural Working Poor Energy Efficient Housing Program to improve energy efficiency in farmworker-owned housing. AB 2715 was held on the Suspense File of this Committee.
AB 862 (Committee on Budget and Fiscal Review, Ch. 36, Stats. 2014) directed CSD to establish LIWP.
Staff Comments:
Costs to LIWP service providers to implement the tracking and health database requirements of the assessment required by AB 1232 may reduce funding available for direct services, thereby potentially reducing the number of households served under LIWP and the program’s greenhouse gas reduction outcomes.
-- END --
Senator Hannah-Beth Jackson, Chair
2019-2020 Regular Session
Bill No: AB 1232 (Author:Gloria)
Version: June 28, 2019
Hearing Date: July 9, 2019
Fiscal: Yes
Urgency: No
Consultant: TSG
SUBJECT
Affordable housing: weatherization
DIGEST
This bill proposes three things in relation to operation of the Low-Income Weatherization Program (LIWP): (1) a study of impacts of the Program on rental rates; (2) greater collaboration between government health and environmental agencies; and (3) clarification of funding distribution timelines.
EXECUTIVE SUMMARY
The LIWP program draws upon Greenhouse Gas Reduction Fund (GGRF) to subsidize energy upgrades to the homes of low-income Californians. It includes everything from changing light fixtures over to LED bulbs, through replacing outdated, inefficient appliances, and on up to installation of solar panels. The goal of the Program is to achieve savings on utility bills for the occupants while improving local environmental conditions and reducing overall energy consumption. This bill proposes three things in relation to how the LIWP program works. Specifically, the bill would: (1) require study of the impact that LIWP upgrades have on the cost of renting; (2) encourage greater collaboration and cross-referrals between public health agencies and the LIWP program; and (3) authorize multi-year allocations of funding to the California Department of Community Services and Development (CSD) for LIWP purposes. The author and proponents of this bill contend that these proposals will help ensure that the Program is achieving its intended results: that the benefits of LIWP upgrades actually accrue to low-income tenants, and that LIWP upgrades are being targeted to households where lack of adequate weatherization is contributing to health problems.
The bill is sponsored by the Asian Pacific Environmental Network and the California Environmental Justice Alliance. Support is from tenant and anti-poverty advocates. There is no known opposition at this time.
PROPOSED CHANGES TO THE LAW
Existing state law:
- Directs CSD to develop and administer the Energy Efficiency Low-Income Weatherization Program and expend moneys appropriated by the Legislature for the purposes of the Program. (Gov. Code § 12087.5(a).)
- Authorizes CSD to develop requirements, guidelines, and subgrantee contract provisions for the Program. (Gov. Code § 12087.5(b).)
- Specifies the intent of the Legislature that GGRF money shall only be appropriated in a specified manner. (Health & Saf. Code § 39712(a)(1).)
This bill:
- Directs CSD, by January 1, 2021, to coordinate with the California Energy Commission and the State Department of Public Health’s (DPH) Office of Health Equity to identify best practices from model programs and funding mechanisms, and provide a recommended action plan to do all of the following:
- ensure greater cross-referrals, as specified;
- promote projects that include energy improvements, as specified; and
- create mechanisms for enforcing state energy upgrade program requirements to maintain the affordability of benefiting units to low-income tenants.
- Directs CSD, in coordination with relevant agencies, to provide an assessment of the effectiveness of the program on or before January 1, 2023. The assessment shall contain all of the following:
- a compilation of actual rates of rent increases and of tenant long-term relocation or eviction, for any reason, after energy upgrades received with the goal of better enforcing or adjusting affordability contracts and measures;
- a summary of the total number of properties that are not regulated by deed restrictions or other legally binding provisions that are below market rate multifamily affordable housing buildings and that are participating in the program; the marketing and outreach efforts of the department or the appropriate administrator pursued for this market segment; and the reasons given for nonparticipation, if any; and
- in coordination with participating public health programs, a database of conditions found in homes that impact or could impact health negatively encountered when doing energy or health audits to track neighborhood hotspots and provide data for environmental screening and social determinants of health tools.
- Clarifies that an eligible expenditure of GGRF money appropriated to the CSD may occur over multiple fiscal years and CSD may make multiyear funding commitments over a period of more than one fiscal year.
COMMENTS
- Background on LIWP
LIWP is administered by CSD, which describes the Program as follows:
California’s Low-Income Weatherization Program (LIWP) provides low-income households with solar photovoltaic (PV) systems and energy efficiency upgrades at no cost to residents. LIWP is the only program of its kind in California that focuses exclusively on serving low-income households with solar PV and energy efficiency upgrades at no cost. The program reduces greenhouse gas emissions and household energy costs by saving energy and generating clean renewable power. LIWP currently operates three program components: Multi-Family, Community Solar, and Farmworker Housing.
LIWP is designed with the primary goal of reducing greenhouse gas emissions by saving energy and generating clean renewable energy for low-income single-family households and multi-family affordable housing. But just as importantly, the program reduces residential energy expenses for low-income households. These improvements also improve household conditions while reducing living expenses for residents – strengthening their economic security – and contribute to the health of communities through improved air quality. They also help lower operating costs for affordable housing operators, helping to preserve valuable below-market housing for low-income families.
LIWP plays an important role in ensuring that all Californians have the opportunity to benefit from the State’s Climate Investments and program services. LIWP also helps cushion the impact of climate change on vulnerable communities, making it more affordable for low-income households to keep their homes cool and comfortable at a lower cost – whether through energy efficient air conditioning or improved insulation – and protect children and seniors from the health impacts of higher temperatures. And, as many low-income Californians are already struggling to make ends meet – and spending a higher proportion of their income on housing than ever before – LIWP can help by lowering utility bills and freeing up limited disposable income for other critical expenses.[1]
2. Questions about the impact of LIWP upgrades on the cost of housing
LIWP services are available to landlords who rent out their property to low-income tenants. In the landlord/tenant context, LIWP’s goal of providing financial assistance to low-income households through utility bill savings can be undermined if, in the wake of the LIWP upgrades, the landlord proceeds to raise the rent. Recognizing this potential problem, CDCSD has developed guidelines for the LIWP program that are intended to prevent landlords from raising rents significantly in the years immediately after their property undergoes LIWP renovations.
Under these guidelines, in order to receive an LIWP upgrade, owners of properties consisting of anywhere from one to four dwellings must promise not to raise the rent on account of the LIWP upgrades (though they still can raise the rent for any other reason). There does not appear to be any mechanism to monitor whether landlords stick to this promise, however, and, beyond the threat that they will not be permitted to received further LIWP services in the future, it is not clear that landlords would face any consequence for raising the rent in spite of the promise.
Owners of multi-family properties with more than five units, meanwhile, must sign an “Affordability Covenant,” in order to receive LIWP upgrades to their property. The basis on which large multi-family dwellings qualify for LIWP often make it easier to ensure that rents do not go up significantly in the wake of LIWP upgrades. Where a building qualifies for LIWP basis on the fact that the property is under a deed restriction to provide at least a certain number of affordable units, the deed restriction itself acts to ensure that rents will not rise even when LIWP upgrades occur. Where a large multifamily dwelling qualifies for LIWP on some other basis, however, or where the deed restriction on the property expires, tenants may still be exposed to rent increases that erase whatever savings they would have realized as a result of the LIWP upgrades. In addition, it is not clear what happens to a landlord’s promise not to raise rents if the property gets sold to a new owner. Leases run with the land, but if the landlord’s promise not to raise the rent is not in the form of a deed restriction, a subsequent owner may not be beholden to it.
In order to understand what is actually happening on the ground and whether or not tenants are receiving the full benefit of LIWP upgrades as intended, this bill directs CSD to undertake an assessment of the Program. The assessment would examine, among other things, how often rent increases are happening in the wake of LIWP upgrades and what justification landlords are using. The results of this assessment may then inform CSD and the Legislature about what policy changes may be needed, if any.
Earlier versions of this bill also contemplated imposing certain rent and eviction control measures on properties receiving LIWP upgrades. In light of the need to gather more information about the scope of the issue, and because imposing strict requirements might discourage some landlords from participating in the weatherization program, the author amended the bill to remove these provisions. The part of the bill that calls for the assessment of the Program still contains a cross-reference to that former aspect of the bill. As that cross-reference is now obsolete, it needs to be removed from the bill.
3. Promotion of cross-referral best practices
Poor housing conditions can cause and/or exacerbate poor health. Where moisture can easily penetrate the interior of dwelling, for example, it can lead to mold growth. The presence of mold, in turn, is associated with increased rates of asthma.[2] Accordingly, in addition to making homes more comfortable and lowering utility bills, weatherization upgrades can have beneficial health impacts, as well.
With this in mind, cross-referrals between public health officials and the LIWP program make good policy sense. The author of this bill states that a number of model cross-referral and collaboration programs of this kind already exist. To encourage more widespread adoption of these models, this bill would charge CSD with convening its counterparts at the California Energy Commission and the DPH’s Office of Health Equity to develop an action plan. That action plan would include ensuring greater cross-referrals, promotion of projects that, in addition to providing health and financial benefits to tenants generally, also increase indoor air quality and address respiratory issues specifically. The action plan would also create mechanisms to try to enforce the housing affordability requirements associated with LIWP upgrades.
4. Facilitation of multi-year projects
The final component of this bill makes a technical clarification regarding appropriation and expenditure of funds for LIWP purposes. LIWP is funded by GGRF monies. Current law places strict requirements on how GGRF funds can be appropriated. (Health & Saf. Code § 39712(a)(1).) The author and proponents of this bill contend that it is not clear whether LIWP can commit to multi-year weatherization projects under the current formulation. The bill would clarify this point by inserting language into the statute governing GGRF appropriations which makes it clear that such commitments are permissible.
5. Proposed technical amendment
In order to address the issues set forth in the Comments, above, the author proposes to incorporate amendments into the bill that would:
- remove an obsolete cross-reference.
The specific amendment is:
Amendment 1
On page 5, in lines 18 and 19, strike out “enforcing subdivision (a) of Section 12087.7 and any other”
6. Arguments in support of the bill
According to the author:
The Low-Income Weatherization Program (LIWP) was created to provide low-income households with energy efficiency upgrades that help the state meet its climate goals while also improving living conditions for impacted communities. It has successfully invested almost $200 million into single and multi-family homes across the state. Yet some questions and potential areas for improvement remain. AB 1232 will require a study of whether property owners are keeping rents affordable in the wake of receiving LIWP upgrades, increase cross-referrals with public health stakeholders to improve habitability and conditions of homes, and clarify the timelines associated with funding of LIWP.
As sponsor of the bill, the Asian Pacific Environmental Network and the California Environmental Justice Alliance, along with 24 co-signatories write:
AB 1232 is an opportunity to advance equitable energy and health services in areas most disproportionately affected by environmental burdens and poor housing quality by expanding LIWP in key ways, while studying potential unintended consequences of green investments without anti-displacement protections. Assessing the rates of rents and relocation occurring under the program over time assists the intention of the program in serving low-income residents and protecting their ability to enjoy the benefits of the program over time.
SUPPORT
Asian Pacific Environmental Network (sponsor)
California Environmental Justice Alliance (sponsor)
Alliance of Californians for Community Empowerment (ACCE) Action
AYPAL
California Housing Partnerships Corporation
California League of Conservation Voters
Carbon Cycle Institute
Causa Justa : Just Cause
Center for Biological Diversity
Community Action to Fight Asthma
East Bay Community Law Center
Ella Baker Center
Environment California
Environmental Defense Fund
Greenlining Institute
Laotian American National Alliance
Little Tokyo Service Center
Local Clean Energy Alliance
Movement Generation Justice and Ecology Project
National Housing Law Project
Natural Resources Defense Council
Neighborhood Legal Services of Los Angeles County
Oakland Rising
Parent Voices
PODER San Francisco
Public Health Justice Collective
Regional Asthma Management Prevention
Rising Sun Center for Opportunity
Tenants Together
Union of Concerned Scientists
OPPOSITION
None known
RELATED LEGISLATION
Pending Legislation: None known
Prior Legislation:
AB 1088 (Eggman, 2017) would have increased access to various existing distributed energy resource and water programs, to the benefit of multifamily residential properties and their residents, especially low-income residents of such properties. AB 1088 died in the Senate Appropriations Committee.
AB 2715 (E. Garcia, 2016) would have directed CSD to develop and administer an Agricultural Working Poor Energy Efficient Housing Program to improve energy efficiency in farmworker-owned housing. AB 2715 died in the Senate Appropriations Committee.
AB 862 (Committee on Budget and Fiscal Review, Ch. 36, Stats. 2014) directed CSD to establish the LIWP program.
PRIOR VOTES:
Assembly Floor (Ayes 58, Noes 18)
Assembly Appropriations Committee (Ayes 14, Noes 4)
Assembly Natural Resources Committee (Ayes 7, Noes 2)
**************
Low-Income Weatherization Program, California Department of Community Services and Development https://www.csd.ca.gov/Pages/Low-Income-Weatherization-Program.aspx (as of Jul. 1, 2019). ↑
Fields, Household Molds Linked to Childhood Asthma (Aug. 20, 2012) National Institutes of Health https://www.nih.gov/news-events/nih-research-matters/household-molds-linked-childhood-asthma (as of Jul. 1, 2019). ↑
ASSEMBLY THIRD READING
ATR Bill Id:AB 1232
Author:(Gloria)
As Amended Ver:April 25, 2019
Majority vote
SUMMARY:
This bill establishes rent control and eviction restrictions on housing units that have received weatherization improvements funded by the Low-Income Weatherization Program (LIWP) at the Department of Community Services and Development (CSD). Specifically, beginning January 1, 2021, this bill requires the owner of a dwelling, housing unit or multiunit residential structure that receives assistance from LIWP to maintain the unit(s) as low-income residential housing for a period of not less than 10 years from the date of project completion.
COMMENTS:
LIWP funds energy efficiency upgrades and solar for both low-income single-family households and multi-family affordable housing at no cost to residents. LIWP is funded by the Greenhouse Gas Reduction Fund. LIWP is designed with the primary goal of reducing greenhouse gas (GHG) emissions by saving energy and generating clean renewable energy. It is also intended to reduce residential energy expenses for low-income households. According to CSD, LIWP helps cushion the impact of climate change on vulnerable communities, making it more affordable for low-income households to keep their homes cool and comfortable at a lower cost – whether through energy efficient air conditioning or improved insulation – and protect children and seniors from the health impacts of higher temperatures.
This bill is intended to prevent landowners of low-income properties from using public funds to upgrade their properties, then raising rents because the properties are of greater value due to the improvements or evicting tenants in order to raise rents on new tenants. The sponsors of the bill, the Asian Pacific Environmental Network and the California Environmental Justice Alliance, want to ensure this low-income program and the public monies it distributes benefit low-income tenants, not solely property owners, who are likely not low-income.
According to the Author:
LIWP was created to provide low-income households with energy efficiency upgrades that both help the state meet its climate goals while also improving living conditions for impacted communities. At the same time, the housing crisis across the state has resulted in gentrification and displacement that put the very households LIWP is intended to support at risk. Many renters feel vulnerable to these pressures and are weary of the potential for LIWP dollars invested in their homes to have the unintended consequence of pushing them out. Placing affordability restrictions on units that receive LIWP funds will protect tenants and ensure that LIWP is achieving its intended mission of [providing] energy efficiency improvements that benefit low-income households.
Arguments in Support:
Supporters of the bill state that it will ensure that funds dedicated to low-income residents in environmental justice communities through the LIWP continue to benefit low-income tenants over time through appropriate tenant protections. AB 1232 also guides inter-agency collaboration between energy and health sectors to address both energy and health needs like mold and lead at the same time, leading to improved habitability, health, and safety in units. Lastly, the bill requests the appropriate data to track the effectiveness of the program over time.
Arguments in Opposition:
None
FISCAL COMMENTS:
According to the Appropriations Committee:
- Increased initial CSD costs of $4.6 million (special fund or GF). Implementing the program requirements, developing standards, creating regulations, enforcement, monitoring, tracking and ongoing support would require CSD to create a new division of an estimated 18 staff members.
- Ongoing administrative costs associated with compliance and maintenance of the program requirements is estimated at $2.3 million (special fund or GF).
VOTES:
ASM NATURAL RESOURCES: 7-2-2
YES: Friedman, Chau, Eggman, Limón, McCarty, Muratsuchi, Mark Stone
NO: Flora, Melendez
ABS, ABST OR NV: Cristina Garcia, Mathis
ASM APPROPRIATIONS: 14-4-0
YES: Gonzalez, Bloom, Bonta, Calderon, Carrillo, Chau, Eggman, Gabriel, Eduardo Garcia, Maienschein, Obernolte, Petrie-Norris, Quirk, Robert Rivas
NO: Bigelow, Brough, Diep, Fong
UPDATED:
VERSION: April 25, 2019
CONSULTANT: Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0000503
Date of Hearing: May 8, 2019
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
ABPCA Bill Id:AB 1232
Author:(Gloria) – As Amended Ver:April 25, 2019
Policy Committee: | Natural Resources | Vote: | 7 - 2 |
|
| ||
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill establishes rent control and eviction restrictions on housing units that have received weatherization improvements funded by the Low-Income Weatherization Program (LIWP) at the Department of Community Services and Development (CSD). Specifically, beginning January 1, 2021, this bill requires the owner of a dwelling, housing unit or multiunit residential structure that receives assistance from LIWP to maintain the unit(s) as low-income residential housing for a period of not less than 10 years from the date of project completion.
FISCAL EFFECT:
Increased initial CSD costs of $4.6 million (special fund or GF). Implementing the program requirements, developing standards, creating regulations, enforcement, monitoring, tracking and ongoing support would require CSD to create a new division of an estimated 18 staff members.
Ongoing administrative costs associated with compliance and maintenance of the program requirements is estimated at $2.3 million (special fund or GF).
COMMENTS:
This bill is intended to prevent landowners of low-income properties from using public funds to upgrade their properties, then raising rents because the properties are of greater value due to the improvements or evicting tenants in order to raise rents on new tenants. The sponsors of the bill, the Asian Pacific Environmental Network and the California Environmental Justice Alliance, want to ensure this low-income program and the public monies it distributes benefit low-income tenants, not solely property owners, who are likely not low-income.
The difficulty in implementing such requirements is that an unintended consequence may result. Namely, in property owners might choose not to participate in the program, which would prevent tenants from receiving any of the benefits.
Lastly, CSD is not well-versed in rent control or eviction programs. The author and supporters of the bill may wish to explore revisions to the bill where CSD distributes the funds but another entity is in charge of implementation and monitoring.
Analysis Prepared by: Jennifer Galehouse / APPR. / (916) 319-2081
Date of Hearing: April 22, 2019
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Laura Friedman, Chair
ABPCA Bill Id:AB 1232 (
Author:Gloria) – As Amended Ver:April 11, 2019
SUBJECT: Affordable housing: weatherization
SUMMARY: Establishes rent control and eviction restriction on housing units that have received weatherization improvements funded by the Low-Income Weatherization Program (LIWP).
EXISTING LAW:
- Requires the Department of Community Services and Development (CSD) to develop and administer the LIWP and to:
- Give weight and priority to applicants that can demonstrate that they have existing ties to the local communities they would be servicing;
- Give preference to organizations with demonstrated performance and outcomes related to low-income energy efficiency and renewable energy services;
- Take appropriate measures to ensure that all potential applicants are aware of changes in procurement process; and,
- Consult with community stakeholders, as specified, in the development, design, and goals of procurements on and after July 1, 2017.
THIS BILL:
- Beginning January 1, 2021, requires the owner of a dwelling, housing unit, or multiunit residential structure that receives assistance from the LIWP for the unit shall maintain the unit as low-income residential housing for a period of not less than 10 years from the date of completion of the weatherization services.
- Authorizes CSD to require that the owners agree to one or more of the following tenant protection items:
- Affordability contracts;
- Agreements on no evictions after energy program upgrades except for good cause;
- Preapproval by CSD of rent increases after energy program upgrades. The requests for approval shall document justification outside of energy efficiency-related benefits added to the unit; and,
- Restrictions on rent increases in case of resale of the property following the energy upgrade.
- Authorizes CSD to require that the owner submit rent rolls for inspection on an annual basis in order to certify compliance with the bill. Requires that the rent rolls are available on CSD’s website.
- By January 1, 2021, requires HCD to coordinate with CSD, and the Department of Health and Human Services to identify best practices from model programs, funding mechanisms, and a recommended action plan to:
- Ensure greater cross-referral between public health agencies, the environmental health investigations branch, and the LIWP for comprehensive energy and healthy home improvements for low-income multifamily residents in disadvantaged communities; and,
- Promote projects that include energy improvements that provide net financial benefits, inclusive of rent and utility costs, provide health benefits to tenants in low-income multifamily properties, and provide increased indoor air quality and address asthma or respiratory issues triggered by mold and moisture.
- Requires CSD to conduct an assessment of the LIWP in targeting and implementation of energy-efficiency projects in unregulated, below-market rate multifamily affordable housing, as specified. Requires that the assessment include:
- A compilation of actual rates of tenant long-term relocation or eviction, for any reason, after energy upgrades received with the goal of better enforcing affordability contracts and measures; and,
- A database of health issues in homes found when doing energy or health audits to better improve the design of environmental screening and social determinants of health tools.
FISCAL EFFECT: Unknown
COMMENTS:
- Author’s statement:
LIWP was created to provide low-income households with energy efficiency upgrades that both help the state meet its climate goals while also improving living conditions for impacted communities. At the same time, the housing crisis across the state has resulted in gentrification and displacement that put the very households LIWP is intended to support at risk. Many renters feel vulnerable to these pressures and are weary of the potential for LIWP dollars invested in their homes to have the unintended consequence of pushing them out. Placing affordability restrictions on units that receive LIWP funds will protect tenants and ensure that LIWP is achieving its intended mission of [providing] energy efficiency improvements that benefit low-income households.
- Background. LIWP funds energy efficiency upgrades and solar for both low-income single-family households and multi-family affordable housing at no cost to residents. LIWP is funded by the Greenhouse Gas Reduction Fund. LIWP is designed with the primary goal of reducing greenhouse gas (GHG) emissions by saving energy and generating clean renewable energy. It is also intended to reduce residential energy expenses for low-income households. According to CSD, LIWP helps cushion the impact of climate change on vulnerable communities, making it more affordable for low-income households to keep their homes cool and comfortable at a lower cost – whether through energy efficient air conditioning or improved insulation – and protect children and seniors from the health impacts of higher temperatures.
A new LIWP Farmworker Housing Component will focus on the direct installation of energy efficiency measures and solar PV systems for farmworker households. The Farmworker Housing Component will provide services across 12 counties with the highest farmworker populations.
The LIWP Single-Family Energy Efficiency & Solar Photovoltaics (PV) Regional Administrator Component is a regionally administered program that installs no-cost energy efficiency measures, solar water heating, and solar PV in low-income single-family dwellings. These projects reduce residential energy demand and GHG and air emissions associated with conventional energy generation. The low-income residents that participate in this program also benefit from lower energy costs.
The LIWP Multi-Family Program provides technical assistance and incentives for the installation of energy efficiency measures and solar PV in low-income multi-family dwellings serving priority populations. These projects reduce residential energy demand and GHG emissions. Low-income residents that participate in this program benefit from lower energy costs. The program also helps preserve affordable housing by reducing owner operating costs. Multi-family farmworker housing is also specifically targeted for services.
The Community Solar Pilot Program is designed to expand access to renewable energy for low-income households that do not have the ability to participate in existing low-income solar PV programs — due to a lack of home ownership, or because of inadequate roofing for solar PV. Households participating in the Community Solar Pilot stand to benefit from reduced energy costs while communities can benefit from reduced air pollutant emissions associated with conventional energy generation.
- This bill. This bill is intended to ensure that residents of properties that receive LIWP improvements are able to experience the benefits of those improvements by establishing rent control and eviction limitations on those properties. However, the author and committee may wish to consider whether establishing these requirements would discourage property owners from participating in LIWP, which would prevent residents from receiving any of the program’s benefits.
The committee may wish to amend the bill to make technical and clarifying amendment to the assessment requirement.
REGISTERED SUPPORT / OPPOSITION:
Support
Asian Pacific Environmental Network (sponsor)
California Environmental Justice Alliance (sponsor)
Environmental Defense Fund
Opposition
None on file
Analysis Prepared by: Elizabeth MacMillan / NAT. RES. /
Bill Author
Bill Co-Author(s):