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 83

Author: Committee on Budget

Amended: 6/22/20 in Senate

Vote: 21

PRIOR VOTES NOT RELEVANT

SENATE BUDGET & FISCAL REVIEW COMMITTEE: 13-3, 6/24/20

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

NOES: Nielsen, Dahle, Morrell

NO VOTE RECORDED: Melendez, Moorlach

SUBJECT: Housing

SOURCE: Author

DIGEST:

This bill provides for statutory changes necessary to enact the housing and homelessness provisions of the Budget Act of 2020.

ANALYSIS: This bill, as part of the 2020-21 Budget package, makes the following statutory changes to implement the Budget Act:

1. National Mortgage Settlement. Allocates $300 million to be administered by the California Housing Finance Agency for the purpose of providing housing counseling services to homeowners, former homeowners, or renters and provide mortgage assistance to households, including borrowers who own residential properties with four or fewer units. Allocates an additional $31 million to Judicial Council for qualified legal services projects and support centers to provide eviction defense or other tenant defense assistance in landlord-tenant disputes, including pre-eviction, and eviction legal services, counseling, advice and consultation, mediation, training, renter education, and representation.
2. Property Exchange for Affordable Housing. Allows state properties to be exchanged for another property or other properties belonging to a local government if:
   1. The Department of Housing and Community Development has determined that the property or properties proposed to be conveyed to the state are suitable for the purpose of affordable housing, as defined.
   2. The Director of the Department of General Services makes a finding that the exchange is in the best interest of the state.
3. Planning and Zoning Law. Revises the requirements for a unit to qualify for inclusion in a committed assistance program, including extending long-term affordability covenants and restrictions that require the unit to be available at affordable housing costs for at least 55 years. Authorizes units in a motel, hotel, or hostel that are converted from nonresidential to residential to count towards a jurisdiction’s adequate sites, if specified conditions are met, including that the unit is part of a long-term recovery response to COVID-19, and authorizes spaces in specified mobilehome parks. Revises the definition of committed assistance to instead require the city or county to enter into a legally enforceable agreement until the end of the 4^th year of the planning period that obligates sufficient available funds or other in-kind services.
4. Special Occupancy Parks. Provides that the Special Occupancy Parks Act does not apply to a non-profit entity under temporary, permanent, or emergency use, as determined by local government through enabling ordinance.
5. Homeless Housing, Assistance, and Prevention Program (HHAPP). States Legislative intent to continue to build on effort to combat homelessness at a regional and statewide level, and provides $300 million for Round 2 of HHAP funding, consistent with the requirements of AB 101 (Committee on Budget, Chapter 159, Statutes of 2019).
   1. Allocates this funding as follows:
      1. $90 million to Continuums of Care (CoC).
      2. $130 million to each city, or city that is also a county that has a population of 300,000 or more as of January 1, 2020.
      3. $80 million to counties.
   2. Allows a city, city and county, single CoC to apply jointly with a counterpart entity or entities. Requires that five percent shall be set aside for the program administration, including state operations and technical assistance. Prohibits a program recipient from using funding to supplant existing local funds for homeless housing, assistance, or prevention. Requires a program recipient to use at least eight percent of the funds allocated for homeless youth populations. Requires funding to be expending using Housing First principles.
   3. Requires an applicant for Round 2 to submit an application according to a calendar established by the Council to provide ample opportunity for technical assistance for applicants. Provides that applications shall be made available no later than November 30, 2020. Requires regular reporting from grant recipients.
6. Building Homes and Jobs Trust Fund. Extends the deadline for a jurisdiction to encumber planning dollars from SB 2 (Atkins, Chapter 364, Statutes of 2017) to December 31, 2020, and expend those funds no later than December 31, 2023.
7. Local Early Action Planning Grants. Extends until January 31, 2021, the time that a jurisdiction may request an allocation of funds for the Local Early Action Planning Grants.
8. General Fund Transfer. Requires any remaining funds deposited on or before July 1, 2020, into the Housing Rehabilitation Loan Fund from the Deferred-Payment Rehabilitation Loan Program, the Rental Housing Construction Program, and the Family Housing Demonstration Program may be transferred to the General Fund, upon order of the Department of Finance. This would result in the transfer of roughly $95 million in legacy funds to the General Fund.
9. Project Room Key. Provides for funds from the Coronavirus Relief Fund and General Fund to acquire, convert, rehabilitate, or capitalize operating subsidies for housing for individuals and families who are experiencing homelessness or who are at risk of homelessness to be disbursed in accordance with the Multifamily Housing Program, including grants to cities, counties, and other local public entities.
   1. Requires, where possible, for funds to be allocated for expenditure in a manner that takes into consideration the following:
      1. Need geographically across the state.
      2. Areas with high unsheltered populations and high COVID-19 infection rates.
      3. The demonstrated ability of the applicant to fund ongoing operating reserves.
      4. The creation of new permanent housing options.
      5. The potential for state funding for capitalized operating reserves to make additional housing units financially viable through this program.
   2. Requires that any project that uses funds received from the Coronavirus Relief Fund for Project Room Key be deemed consistent and in conformity with any applicable local plan, standard, or requirement, and allowed as a permitted use, and that the project shall not be subject to a conditional use permit, discretionary permit, or to any other discretionary reviews or approvals. Requires the administration to report on the use of funds.
10. California Environmental Quality Act (CEQA) Requirements. Provides an exemption from CEQA requirements for Project Room Key projects if certain requirements are satisfied. Specifies that the exemption applies only to a project for which the initial application to the city, county, or city and county where the project is located was submitted on or before April 30, 2021, and specifies the exemption sunsets on July 1, 2021. The requirements for a project to receive and exemption include.
    1. No units were acquired by eminent domain.
    2. The units will be in decent, safe, and sanitary condition at the time of their occupancy.
    3. The project proponent shall requires all contractors and subcontractors performing work on the project to pay prevailing wages for any rehabilitation, construction, or alternations.
    4. The project proponent obtains an enforceable commitment that all contractors and subcontractor performing work on the project will use a skilled and trained workforce for any rehabilitation, construction, or alterations.
    5. The project proponent submits to the lead agency a letter of support from a county, city, or other local public entity for any rehabilitation, construction, or alteration work.
    6. Any acquisition is paid for exclusively by public funds.
    7. The project provides housing units for individuals and families who are experiencing homelessness or who are at risk of homelessness.
    8. Long-term covenants and restriction require the units to be restricted to persons experiencing homelessness or who are at risk of homelessness, which may include lower income, and very low-income households, for no fewer than 55 years.
    9. The project does not increase the original footprint of the project structure or structures by more than 10 percent. Any increase to the footprint of the original project structure or structures shall be exclusively to support the conversion to housing for the designated population.
11. Low Income Housing Tax Credit. Makes a number of changes to the state Low Income Housing Tax Credit program. Specifically, this bill:
    1. Specifies that tax credits be made available in the 2021 calendar year by the California Tax Credit Allocation Committee (CTCAC) after CTCAC and the California Debt Limit Allocation Committee (CDLAC) have adopted regulations, rules or guidelines to align programs of both committees with the objective of increasing production and containing costs.
    2. Requires CTCAC to accept applications for the 2021 calendar year not sooner than 30 days after those regulations, rules, or guidelines have been adopted. Provides that CDLAC shall not accept applications for the 2021 calendar year for bond allocations for an eligible project prior to issuing, reviewing, and publishing a new tax-exempt private activity bond demand survey.
    3. Revises the allocation methodology for the 2021 calendar year and thereafter, when CTCAC and CDLAC develop and prescribe regulations, rules or guidelines that includes a scoring system that maximizes the efficient use of public subsidy and benefit created through the private activity bond and low-income housing tax credit programs.
    4. Allows CDLAC to adopt emergency regulations for bond allocations for the 2021 calendar year.
    5. Requires CDLAC to report to the Legislature by April 1, 2021, on the private activity bonds awarded during the 2020 calendar year as specified.
    6. Requires CTCAC to report to the Legislature by April 1, 2021, on federal and state low-income housing tax credits allocated from the 2019-20 budget as specified.
12. Housing First Cleanup. Extends the requirements that agencies and departments administering state programs to collaborate with the Homeless Coordinating and Financing Council to revise or adopt guidelines and regulations to incorporate core components of Housing First to July 1, 2022. Requires an agency or department that administers programs that fund recovery housing to do the following:
    1. Coordinate with the Homeless Coordinating and Financing Council, consult with the Legislature, the Business, Consumer Services, and Housing Agency, the federal Department of Housing and Urban Development, and other stakeholders between July 1, 2020, and January 1, 2022, to identify ways to improve the provision of housing to individuals who receive funding from that agency or department, consistent with the applicable requirements of state law.
    2. Ensure that recovery housing programs provide assistance in accessing housing for individuals who are removed or discharged from recovery housing programs, and that those programs report to the state on housing outcomes for program participants.
13. Transitional Housing Program Suspension. Provides that funds appropriated to the Transitional Housing program are subject to suspension if certain projections are not met for the General Fund. States that it is the intent of the Legislature to consider alternative solutions to prevent the suspension.

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

According to the Senate Budget and Fiscal Review Committee, the provisions of this bill are necessary to implement the requirements of the 2020-21 Budget.

SUPPORT: (Verified 6/23/20)

None received

OPPOSITION: (Verified 6/23/20)

None received

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

6/25/20 0:46:59

**** END ****

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 83

Author:(Committee on Budget)

As Amended Ver:June 22, 2020

Majority vote. Budget Bill Appropriation Takes Effect Immediately

SUMMARY:

This is the housing and homelessness trailer bill for the 2020-21 budget. It contains the necessary changes necessary to implement the 2020 Budget Act. Specifically, this bill:

The Senate Amendments:

Delete the current contents of the bill and replaces it with the following:

National Mortgage Settlement Fund

1. Allocates $300 million to be administered by the California Housing Finance Agency for the purpose of providing housing counseling services to homeowners, former homeowners, or renters and provide mortgage assistance to households, including borrowers who own residential properties with four or fewer units.
2. Allocates $31 million to Judicial Council for qualified legal services projects and support centers to provide eviction defense or other tenant defense assistance in landlord-tenant disputes, including pre-eviction, and eviction legal services, counseling, advice and consultation, mediation, training, renter education, and representation.

Property Exchange for Affordable Housing

1. Allows state properties to be exchanged for another property or other properties belonging to a local government if:
   1. The Department of Housing and Community Development has determined that the property or properties proposed to be conveyed to the state are suitable for the purpose of affordable housing, as specified.
   2. The Director of the Department of General Services makes a finding that the exchange is in the best interest of the state.
   3. Defines Affordable housing to have the same meaning as Section 50052.5 of the Health and Safety Code.

Planning and Zoning Law

1. Revises the requirements for a unit to qualify for inclusion in a committed assistance program, including extending long-term affordability covenants and restrictions that require the unit to be available at affordable housing costs for at least 55 years.
2. Authorizes units in a motel, hotel, or hostel that are converted from nonresidential to residential to count towards a jurisdiction's adequate sites, if specified conditions are met, including that the unit is part of a long-term recovery response to COVID-19, and authorizes spaces in specified mobilehome parks.
3. Revises the definition of committed assistance to instead require the city or county to enter into a legally enforceable agreement during the period from the beginning of the projection period until the end of the 4th year of the planning period that obligates sufficient available funds or other in-kind services.

Special Occupancy Parks Act

1. Provides that the Special Occupancy Parks Act does not apply to a non-profit entity under temporary, permanent, or emergency use, as determined by local government through enabling ordinance.

Homeless Housing, Assistance, and Prevention (HHAP) program Round 2

1. Creates a Round 2 of HHAP funding in the amount of $300 million.
2. Contains provisions that state that it is the intent of the Legislature that:
   1. These moneys build on regional coordination developed through previous rounds of funding.
   2. These moneys continue to build regional collaboration between continuums of care, counties and cities in a given region, regardless of population, and ultimately be used to develop a unified regional response to homelessness.
   3. These moneys be paired strategically with other local, state, and federal funds.
   4. These moneys be deployed with the goal of reducing the number of homeless individuals in a given region through investing in long-term solutions, and that the state be an integral partner through technical assistance, sharing of best practices, and implementing accountability framework to guide current and future state investments.
   5. That additional state funds for homelessness increase permanent housing exits, further evidence-based solutions for individuals and families, consider outcomes from prior funding awards and include strong accountability measures.
3. Allocates $300 million as follows:
   1. $90 million to Continuums of Care (CoC)
   2. $130 million to each city, or city that is also a county that has a population of 300,000 or more as of January 1, 2020.
   3. $80 million to counties
4. Allows a city, city and county, single CoC to apply jointly with a counterpart entity or entities.
5. Requires that 5% shall be set aside for the program administration, including state operations and technical assistance.
6. Prohibits a program recipient from using funding to supplant existing local funds for homeless housing, assistance, or prevention.
7. Requires a program recipient to use at least 8 percent of the funds allocated for homeless youth populations.
8. Requires funding to be expending using Housing First principles.
9. Requires an applicant to receive Round 2 to submit an application according to the calendar established by the Council as follows:
   1. The council shall make an application for Round 2 program allocations available no later than November 30, 2020
   2. Applications shall be due to the council no later than 60 days from the date the council makes those applications available.
   3. Within 60 days of receiving an application, the council shall either approve the application or return it to the applicant with written, detailed comments and request one or more amendments as specified.
   4. An applicant whose application has been returned shall respond to the council's requested amendments and submit a revised application within 45 days. Where the revised application differs from the council's request, the applicant shall include an explanation of the differences and the rationale for departing from the council's requested amendments.
   5. Provides that the council shall have 30 days within which to approve the application, as amended, to address the council's concerns.
10. Requires an application submitted to the council to provide information as specified, in the form and manner described by the council.
11. Allows the council to request additional documentation and information from the applicant with respect to Round 2 program allocations consistent with the requirements of subdivision (b).
12. Requires a recipient of Round 2 program allocations to expend funds on evidence-based solutions that address and prevent homelessness among eligible populations including any of the following:
    1. Rapid rehousing, including rental subsidies and incentives to landlords, such as security deposits and holding fees.
    2. Operating subsidies in new and existing affordable or supportive housing units, emergency shelters, and navigation centers. Operating subsidies may include operating reserves.
    3. Street outreach to assist persons experiencing homelessness to access permanent housing and services.
    4. Services coordination, which may include access to workforce, education, and training programs, or other services needed to promote housing stability in supportive housing.
    5. Systems support for activities necessary to create regional partnerships and maintain a homeless services and housing delivery system, particularly for vulnerable populations including families and homeless youth.
    6. Delivery of permanent housing and innovative housing solutions, such as hotel and motel conversions.
    7. Prevention and shelter diversion to permanent housing, including rental subsidies.
    8. New navigation centers and emergency shelters based on demonstrated need. Demonstrated need for purposes of this paragraph shall be based on the following:
       1. The number of available shelter beds in the city, county, or region served by a continuum of care.
       2. The number of people experiencing unsheltered homelessness in the homeless point-in-time count.
       3. Shelter vacancy rate in the summer and winter months.
       4. Percentage of exits from emergency shelters to permanent housing solutions.
       5. A plan to connect residents to permanent housing.
13. Provides that up to 5 percent of an applicant's Round 2 program allocation may be expended for the following uses that are intended to meet federal requirements for housing funding:
    1. Strategic homelessness plan, as defined in Code of Federal Regulations, Title 24, Section 578.7(c).
    2. Infrastructure development to support coordinated entry systems and Homeless Management Information Systems.
14. Requires beginning in 2021, in addition to the data required on the report under Section 50221, applicants provide specified information for both rounds of program allocations through a data collection, reporting, performance monitoring, and accountability framework as established by the council.
15. Requires a final report no later than January 1, 2027 for each recipient that receives a Round 2 program allocation.

Building Homes and Jobs Trust Fund

1. Extends the deadline for a jurisdiction to encumber its SB 2 planning dollars to December 31, 2020, and expend those funds no later than December 31, 2023.

Local Early Action Planning Grants

1. Extends until January 31, 2021, the time that a jurisdiction may request an allocation of funds for the Local Early Action Planning Grants.

General Fund Transfer

1. Requires any remaining funds deposited on or before July 1, 2020, into the Housing Rehabilitation Loan Fund from the Deferred-Payment Rehabilitation Loan Program established by this chapter, the Rental Housing Construction Program established by Chapter 9 (commencing with Section 50735), and the Family Housing Demonstration Program established by Section 5 of Chapter 30 of the Statutes of 1988 may be transferred to the General Fund, upon order of the Department of Finance.

Project Room Key

1. Requires funds from the Coronavirus Relief Fund to provide housing for individuals and families who are experiencing homelessness or who are at risk of homelessness be disbursed in accordance with the Multifamily Housing Program, including grants to cities, counties, and other local public entities for the following:
   1. Acquisition or rehabilitation of motels, hotels, or hostels.
   2. Master leasing of properties.
   3. Acquisition of other sites and assets, including purchase of apartments or homes, adult residential facilities, residential care facilities for the elderly, manufactured housing, and other buildings with existing residential uses that could be converted to permanent or interim housing.
   4. Conversion of units from nonresidential to residential in a structure with a certificate of occupancy as a motel, hotel, or hostel.
   5. The purchase of affordability covenant and restrictions for units.
   6. Relocation costs for individuals who are being displaced as a result of rehabilitation of existing units.
   7. Capitalized operating subsidies for units purchased, converted, or altered with funds provided by this section.
2. Requires, where possible, for funds to be allocated for expenditure in a manner that takes into consideration the following:
   1. Need geographically across the state.
   2. Areas with high unsheltered populations and high COVID-19 infection rates.
   3. The demonstrated ability of the applicant to fund ongoing operating reserves.
   4. The creation of new permanent housing options.
   5. The potential for state funding for capitalized operating reserves to make additional housing units financially viable through this program.
3. Allows the Department of Housing and Community Development to adopt guidelines for the expenditure of the funds appropriated to the department.
4. Provides that up to 2 percent of the funds appropriated for the costs to administer this program.
5. Requires the Department of Housing and Community Development, in coordination with the Business, Consumer Services, and Housing Agency to report to the chairs of each fiscal committee and each relevant policy committee of the Legislature on the use of the funds described in this section.
6. Requires that any project that uses funds received from the Coronavirus Relief Fund for any of the purposes specified in No. 26 above shall be deemed consistent and in conformity with any applicable local plan, standard, or requirement, and allowed as a permitted use, within the zone in which the structure is located, and shall not be subject to a conditional use permit, discretionary permit, or to any other discretionary reviews or approvals.

CEQA Exemption

1. Provides a CEQA exemption for Project Room Key projects if all of the following requirements, if applicable, are satisfied:
   1. No units were acquired by eminent domain.
   2. The units will be in decent, safe, and sanitary condition at the time of their occupancy.
   3. The project proponent shall requires all contractors and subcontractors performing work on the project to pay prevailing wages for any rehabilitation, construction, or alternations.
   4. The project proponent obtains an enforceable commitment that all contractors and subcontractor performing work on the project will use a skilled and trained workforce for any rehabilitation, construction, or alterations.
   5. The project proponent submits to the lead agency a letter of support from a county, city, or other local public entity for any rehabilitation, construction, or alteration work.
   6. Any acquisition is paid for exclusively by public funds.
   7. The project provides housing units for individuals and families who are experiencing homelessness or who are at risk of homelessness.
   8. Long term covenants and restriction require the units to be restricted to persons experiencing homelessness or who are at risk of homelessness, which may include lower income, and very low income households, for no fewer than 55 years.
   9. The project does not increase the original footprint of the project structure or structures by more than 10 percent. Any increase to the footprint of the original project structure or structures shall be exclusively to support the conversion to housing for the designated population.
2. Specifies that it applies only to a project for which the initial application to the city, county, or city and county where the project is located was submitted on or before April 30, 2021.
3. Repeals this section on July 1, 2021.

Low Income Housing Tax Credit

1. Specifies that tax allocations amounts be available in the calendar year by the California Tax Credit Allocation Committee (CTCAC) after CTCAC and the California Debt Limit Allocation Committee (CDLAC) have adopted regulations, rules or guidelines to align programs of both committees with the objective of increasing production and containing costs.
2. Requires CTCAC to accept applications for the 2021 calendar year not sooner than 30 days after these regulations, rules or guidelines have been adopted.
3. Provides that CDLAC shall not accept applications for the 2021 calendar year for bond allocations for an eligible project prior to issuing, reviewing, and publishing a new tax-exempt private activity bond demand survey.
4. Revises allocation methodology for the 2021 calendar year and thereafter, when CTCAC and CDLAC develop and prescribe regulations, rules or guidelines that includes a scoring system that maximizes the efficient use of public subsidy and benefit created through the private activity bond and low-income housing tax credit programs. The factors for determining the efficient use of public subsidy and benefit shall include, but not be limited to, all of the following:
   1. The number and size of units developed including local incentives provided to increase density.
   2. The proximity to amenities, jobs, and public transportation.
   3. The location of the development.
   4. The delivery of housing affordable to very low and extremely low income households by the development.
5. Allows CDLAC to adopt emergency regulations for bond allocations for the 2021 calendar year.
6. Includes intent language related to programs at CDLAC, CTCAC, the Department of Housing and Community Development.
7. Requires CDLAC to report to the Legislature by April 1, 2021 on the data from the private activity bonds awarded during the 2020 calendar year as specified.
8. Requires CTCAC to report to the Legislature by April 1, 2021 on the data on federal and state low-income housing tax credits allocated from the 2019-20 budget as specified.

Housing First and CDCR

1. Extends the requirements that agencies and departments administering state programs to collaborate with the coordinating council to revise or adopt guidelines and regulations to incorporate core components of Housing First to July 1, 2022.
2. Revises who an agency or department that administers programs that fund recovery housing to do the following:
   1. Coordinate with the Homeless Coordinating and Financing Council, consult with the Legislature, the Business, Consumer Services, and Housing Agency, the federal Department of Housing and Urban Development, and other stakeholders between July 1, 2020 and January 1, 2022 to identify ways to improve the provision of housing to individuals who receive funding from that agency or department, consistent with the applicable requirements of state law.
   2. Ensure that recovery housing programs meet the following requirements:
      1. A recovery housing program participant shall sign an agreement upon entry that outlines the roles and responsibilities of both the participant and the program administrator to ensure individuals are aware of actions that could result in removal from the recovery housing program.
      2. If a recovery housing program participant chooses to stop living in a housing setting with an abstinence focus, is discharged from the program, or is evicted from housing, the program administrator shall offer assistance in accessing other housing and services options, including options operated with harm-reduction principles. To the extent practicable, this assistance shall include connecting the individual with alternative housing providers, supportive services, and the local coordinated entry system, if applicable. This clause does not apply to an individual who leaves the program without notifying the program administrator.
      3. The recovery housing program administrator shall track and report annually to the program's state funding source the housing outcome for each program participant who is discharged.

Housing Navigator Program and Suspension

1. Provides that moneys appropriated to the Housing Navigator program are subject to the suspension if certain projections are not met for the General Fund.
2. States that it is the intent of the Legislature to consider alternative solutions to prevent the suspension.

COMMENTS:

This bill is a budget trailer bill within the overall 2020-21 budget package necessary to implement action related to housing and homelessness.

According to the Author:

None.

Arguments in Support:

None on file.

Arguments in Opposition:

None on file.

FISCAL COMMENTS:

This bill appropriates $331 million to the National Mortgage Settlement Fund and allocates $300 million to be used for HHAP program Round 2 funding.

VOTES:

ASSEMBLY FLOOR: 54-13-13

YES: Aguiar-Curry, Bauer-Kahan, Bloom, Boerner Horvath, Bonta, Burke, Calderon, Carrillo, Cervantes, Chau, Chu, Cooper, Daly, Eggman, Frazier, Friedman, Gabriel, Cristina Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Limón, Maienschein, McCarty, Medina, Mullin, Muratsuchi, Nazarian, 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

NO: Bigelow, Brough, Dahle, Flora, Fong, Gallagher, Kiley, Mathis, Melendez, Obernolte, Patterson, Voepel, Waldron

ABS, ABST OR NV: Arambula, Berman, Chen, Chiu, Choi, Cooley, Cunningham, Diep, Eduardo Garcia, Lackey, Levine, Low, Mayes

UPDATED:

VERSION: June 22, 2020

CONSULTANT: Christian Griffith / BUDGET / (916) 319-2099 FN: 0003129

SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW

Senator Holly Mitchell, Chair

2019 - 2020 Regular

Bill No: AB 83 Hearing Date: June 24, 2020

Subject: Housing

Summary:

This bill provides for statutory changes necessary to enact the housing and homelessness provisions of the Budget Act of 2020.

Proposed Law:

This bill, as part of the 2020-21 Budget package, makes the following statutory changes to implement the Budget Act: 

1. National Mortgage Settlement. Allocates $300 million to be administered by the California Housing Finance Agency for the purpose of providing housing counseling services to homeowners, former homeowners, or renters and provide mortgage assistance to households, including borrowers who own residential properties with four or fewer units. Allocates an additional $31 million to Judicial Council for qualified legal services projects and support centers to provide eviction defense or other tenant defense assistance in landlord-tenant disputes, including pre-eviction, and eviction legal services, counseling, advice and consultation, mediation, training, renter education, and representation.
2. Property Exchange for Affordable Housing. Allows state properties to be exchanged for another property or other properties belonging to a local government if:
   1. The Department of Housing and Community Development has determined that the property or properties proposed to be conveyed to the state are suitable for the purpose of affordable housing, as defined.
   2. The Director of the Department of General Services makes a finding that the exchange is in the best interest of the state.
3. Planning and Zoning Law. Revises the requirements for a unit to qualify for inclusion in a committed assistance program, including extending long-term affordability covenants and restrictions that require the unit to be available at affordable housing costs for at least 55 years. Authorizes units in a motel, hotel, or hostel that are converted from nonresidential to residential to count towards a jurisdiction’s adequate sites, if specified conditions are met, including that the unit is part of a long-term recovery response to COVID-19, and authorizes spaces in specified mobilehome parks. Revises the definition of committed assistance to instead require the city or county to enter into a legally enforceable agreement until the end of the 4^th year of the planning period that obligates sufficient available funds or other in-kind services.
4. Special Occupancy Parks. Provides that the Special Occupancy Parks Act does not apply to a non-profit entity under temporary, permanent, or emergency use, as determined by local government through enabling ordinance.
5. Homeless Housing, Assistance, and Prevention Program (HHAPP). States Legislative intent to continue to build on effort to combat homelessness at a regional and statewide level, and provides $300 million for Round 2 of HHAP funding, consistent with the requirements of AB 101 (Committee on Budget), Chapter 159, Statutes of 2019.
   1. Allocates this funding as follows:
      1. $90 million to Continuums of Care (CoC)
      2. $130 million to each city, or city that is also a county that has a population of 300,000 or more as of January 1, 2020.
      3. $80 million to counties
   2. Allows a city, city and county, single CoC to apply jointly with a counterpart entity or entities. Requires that five percent shall be set aside for the program administration, including state operations and technical assistance. Prohibits a program recipient from using funding to supplant existing local funds for homeless housing, assistance, or prevention. Requires a program recipient to use at least eight percent of the funds allocated for homeless youth populations. Requires funding to be expending using Housing First principles.
   3. Requires an applicant for Round 2 to submit an application according to a calendar established by the Council to provide ample opportunity for technical assistance for applicants. Provides that applications shall be made available no later than November 30, 2020. Requires regular reporting from grant recipients.
6. Building Homes and Jobs Trust Fund. Extends the deadline for a jurisdiction to encumber planning dollars from SB 2 (Atkins), Chapter 364, Statutes of 2017, to December 31, 2020, and expend those funds no later than December 31, 2023.
7. Local Early Action Planning Grants. Extends until January 31, 2021, the time that a jurisdiction may request an allocation of funds for the Local Early Action Planning Grants.
8. General Fund Transfer. Requires any remaining funds deposited on or before July 1, 2020, into the Housing Rehabilitation Loan Fund from the Deferred-Payment Rehabilitation Loan Program, the Rental Housing Construction Program, and the Family Housing Demonstration Program may be transferred to the General Fund, upon order of the Department of Finance. This would result in the transfer of roughly $95 million in legacy funds to the General Fund.
9. Project Room Key. Provides for funds from the Coronavirus Relief Fund and General Fund to acquire, convert, rehabilitate, or capitalize operating subsidies for housing for individuals and families who are experiencing homelessness or who are at risk of homelessness to be disbursed in accordance with the Multifamily Housing Program, including grants to cities, counties, and other local public entities.
   1. Requires, where possible, for funds to be allocated for expenditure in a manner that takes into consideration the following:
      1. Need geographically across the state.
      2. Areas with high unsheltered populations and high COVID-19 infection rates.
      3. The demonstrated ability of the applicant to fund ongoing operating reserves.
      4. The creation of new permanent housing options.
      5. The potential for state funding for capitalized operating reserves to make additional housing units financially viable through this program.
   2. Requires that any project that uses funds received from the Coronavirus Relief Fund for Project Room Key be deemed consistent and in conformity with any applicable local plan, standard, or requirement, and allowed as a permitted use, and that the project shall not be subject to a conditional use permit, discretionary permit, or to any other discretionary reviews or approvals. Requires the administration to report on the use of funds.
10. California Environmental Quality Act (CEQA) Requirements. Provides an exemption from CEQA requirements for Project Room Key projects if certain requirements are satisfied. Specifies that the exemption applies only to a project for which the initial application to the city, county, or city and county where the project is located was submitted on or before April 30, 2021, and specifies the exemption sunsets on July 1, 2021. The requirements for a project to receive and exemption include.
    1. No units were acquired by eminent domain.
    2. The units will be in decent, safe, and sanitary condition at the time of their occupancy.
    3. The project proponent shall requires all contractors and subcontractors performing work on the project to pay prevailing wages for any rehabilitation, construction, or alternations.
    4. The project proponent obtains an enforceable commitment that all contractors and subcontractor performing work on the project will use a skilled and trained workforce for any rehabilitation, construction, or alterations.
    5. The project proponent submits to the lead agency a letter of support from a county, city, or other local public entity for any rehabilitation, construction, or alteration work.
    6. Any acquisition is paid for exclusively by public funds.
    7. The project provides housing units for individuals and families who are experiencing homelessness or who are at risk of homelessness.
    8. Long-term covenants and restriction require the units to be restricted to persons experiencing homelessness or who are at risk of homelessness, which may include lower income, and very low-income households, for no fewer than 55 years.
    9. The project does not increase the original footprint of the project structure or structures by more than 10 percent. Any increase to the footprint of the original project structure or structures shall be exclusively to support the conversion to housing for the designated population.
11. Low Income Housing Tax Credit. Makes a number of changes to the state Low Income Housing Tax Credit program. Specifically, this bill:
    1. Specifies that tax credits be made available in the 2021 calendar year by the California Tax Credit Allocation Committee (CTCAC) after CTCAC and the California Debt Limit Allocation Committee (CDLAC) have adopted regulations, rules or guidelines to align programs of both committees with the objective of increasing production and containing costs.
    2. Requires CTCAC to accept applications for the 2021 calendar year not sooner than 30 days after those regulations, rules, or guidelines have been adopted. Provides that CDLAC shall not accept applications for the 2021 calendar year for bond allocations for an eligible project prior to issuing, reviewing, and publishing a new tax-exempt private activity bond demand survey.
    3. Revises the allocation methodology for the 2021 calendar year and thereafter, when CTCAC and CDLAC develop and prescribe regulations, rules or guidelines that includes a scoring system that maximizes the efficient use of public subsidy and benefit created through the private activity bond and low-income housing tax credit programs.
    4. Allows CDLAC to adopt emergency regulations for bond allocations for the 2021 calendar year.
    5. Requires CDLAC to report to the Legislature by April 1, 2021 on the private activity bonds awarded during the 2020 calendar year as specified.
    6. Requires CTCAC to report to the Legislature by April 1, 2021 on federal and state low-income housing tax credits allocated from the 2019-20 budget as specified.
12. Housing First Cleanup. Extends the requirements that agencies and departments administering state programs to collaborate with the Homeless Coordinating and Financing Council to revise or adopt guidelines and regulations to incorporate core components of Housing First to July 1, 2022. Requires an agency or department that administers programs that fund recovery housing to do the following:
    1. Coordinate with the Homeless Coordinating and Financing Council, consult with the Legislature, the Business, Consumer Services, and Housing Agency, the federal Department of Housing and Urban Development, and other stakeholders between July 1, 2020 and January 1, 2022 to identify ways to improve the provision of housing to individuals who receive funding from that agency or department, consistent with the applicable requirements of state law.
    2. Ensure that recovery housing programs provide assistance in accessing housing for individuals who are removed or discharged from recovery housing programs, and that those programs report to the state on housing outcomes for program participants.
13. Housing Navigator Program Suspension. Provides that moneys appropriated to the Housing Navigator program are subject to the suspension if certain projections are not met for the General Fund. States that it is the intent of the Legislature to consider alternative solutions to prevent the suspension.

Fiscal Effect:

The provisions of this bill are necessary to implement the requirements of the 2020-21 Budget.

Support:

None on File.

Opposed:

None on File.

-- END --

 THIRD READING  

Bill No: AB 83

Author: Committee on Budget

Amended: 6/11/19 in Senate

Vote: 21

SENATE BUDGET & FISCAL REVIEW COMMITTEE: 12-5, 6/12/19

AYES: Mitchell, Beall, Durazo, Hurtado, Leyva, McGuire, Monning, Roth, Skinner, Stern, Umberg, Wieckowski

NOES: Nielsen, Jones, Moorlach, Morrell, Stone

NO VOTE RECORDED: Pan

ASSEMBLY FLOOR: Not relevant

SUBJECT: Employment

SOURCE: Author

DIGEST:

This bill makes necessary changes to implement the 2019-20 Budget related to general government and employment.

ANALYSIS: This bill makes various statutory changes to implement the general government and employment related provisions of the 2019-20 Budget. Specifically, this bill:

1. Paid Family Leave. Extends the duration of Paid Family Leave benefits from six weeks to eight weeks beginning July 1, 2020, and reduces the reserve requirement for the Disability Insurance Fund from 45 percent to 30 percent beginning July 1, 2019. Incudes legislative intent language for the Governor’s Office to convene a task force to develop a proposal by November 2019 to extend the duration of paid family leave benefits to six months by 2021-22 for parents to care for, and bond with, their newborn or newly adopted child. The proposal will also address job protections for workers and the goal of providing a 90 percent wage replacement rate for low-wage workers utilizing the Paid Family Leave program to bond with a child.
2. Nonindustrial Disability Insurance. Expands nonindustrial disability insurance benefits for excluded state employees who are enrolled in annual leave programs to also take paid time off to care for a seriously ill family member or bond with a new child, beginning July 1, 2019.
3. Domestic Workers Outreach and Education Program. Provides $5 million in one-time General Fund to create an outreach and education grant program for domestic workers. The Department of Industrial Relations (DIR) Division of Labor Standards Enforcement will allocate grants to community based organizations to provide education and outreach services primarily focused on, but not limited to domestic work employees and employers.
4. Lead Exposure Limits. Requires DIR’s Division of Occupational Safety and Health to complete rulemaking to revise the lead standards of the general industry safety orders and the construction safety orders consistent with scientific research and findings, by September 30, 2020.
5. Sexual Harassment Training for Janitorial Industry. Eliminates duplicative training requirements for employers who are subject to the mandates of both the Property Service Worker’s Protection Act pursuant to AB 1978 (Gonzalez, Chapter 373, Statues of 2016) and the Fair Employment and Housing Act requirements included in SB 1343 (Mitchell, Chapter 956, Statutes of 2018). This bill ensures that training is consistent with the Fair Employment and Housing Act training and clarifies that janitorial contractors must comply with the provisions specified in AB 1978 and SB 1343.
6. Transfer Authority and Data. Provides the Department of Human Resources (CalHR) with direct transfer authority for funds associated with CalHR’s reimbursable programs. This bill also requires CalHR to develop and maintain a tracking system to collect data regarding discrimination and harassment complaints across state agencies.
7. Exempt and Excluded Employees’ Other Post-Employment Benefits. Clarifies that new excluded or exempt employees who are not related to a bargaining unit, or an officer or employee of the executive branch who is not a member of state civil service, who are hired after July 1, 2019, are subject to a lower employer contribution rate for future retiree health benefits under the 80/80 percent employer contribution formula.
8. Payroll Deferral. Repeals the provision of current law requiring that on or after January 1, 2010, payments to employees paid on June 30 of each year be issued on July 1.
9. Administration of Social Security Benefits. Brings the Old Age and Survivors’ Insurance (OASI) Revolving Fund under the budget approval process to ensure administrative oversight and provide better insight and transparency into the State Social Security Administrator Program and OASI Fund reserves. Additionally, this bill increases the penalty for public agencies that fail to pay the social security administration assessment.
10. CalSavers. Makes provisions that require the Employment Development Department (EDD) to assess a penalty on any eligible employer that fails to make the CalSavers Retirement Savings Program available to employees operative only when the board notifies the Director of EDD that enforcement should proceed and the board and the Director of EDD agree to a reasonable implementation timeline, rather than six months after the board notifies the Director of EDD that the act will be implemented.
11. Secure Choice Retirement Savings. Requires the California Secure Choice Retirement Savings Investment Board to design and disseminate to employers an employee information packet that includes disclosure and opt-out forms to be made available to eligible employees. Current law requires these employee information packets to be made available through EDD.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: Yes

SUPPORT: (Verified 6/11/19)

None received

OPPOSITION: (Verified 6/11/19)

None received

Prepared by: Anita Lee / B. & F.R. / 916-651-4103

6/14/19 11:23:00

**** END ****

ASSEMBLY THIRD READING

ATR Bill Id:AB 83

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: 0000126

SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW

Senator Holly Mitchell, Chair

2019 - 2020 Regular

Bill No: AB 83 Hearing Date: June 12, 2019

Subject: Employment

Summary:

This bill makes necessary changes to implement the 2019-20 budget related to general government and employment.

Proposed Law:

This bill makes various statutory changes to implement the general government and employment related provisions of the 2019-20 budget. Specifically, this bill:

1. Paid Family Leave. Extends the duration of Paid Family Leave benefits from 6 weeks to 8 weeks beginning July 1, 2020 and reduces the reserve requirement for the Disability Insurance Fund from 45 percent to 30 percent beginning July 1, 2019. Incudes legislative intent language for the Governor’s Office to convene a task force to develop a proposal by November 2019 to extend the duration of paid family leave benefits to six months by 2021-22 for parents to care for, and bond with, their newborn or newly adopted child. The proposal will also address job protections for workers and the goal of providing a 90 percent wage replacement rate for low-wage workers utilizing the Paid Family Leave program to bond with a child.
2. Nonindustrial Disability Insurance. Expands nonindustrial disability insurance benefits for excluded state employees who are enrolled in annual leave programs to also take paid time off to care for a seriously ill family member or bond with a new child, beginning July 1, 2019.
3. Domestic Workers Outreach and Education Program. Provides $5 million in one-time General Fund to create an outreach and education grant program for domestic workers. The Department of Industrial Relations (DIR) Division of Labor Standards Enforcement will allocate grants to community based organizations to provide education and outreach services primarily focused on, but not limited to domestic work employees and employers.
4. Lead Exposure Limits. Requires DIR’s Division of Occupational Safety and Health to complete rulemaking to revise the lead standards of the general industry safety orders and the construction safety orders consistent with scientific research and findings, by September 30, 2020.
5. Sexual Harassment Training for Janitorial Industry. Eliminates duplicative training requirements for employers who are subject to the mandates of both the Property Service Worker’s Protection Act pursuant to Assembly Bill 1978 (Gonzalez), Chapter 373, Statues of 2016, and the Fair Employment and Housing Act requirements included in Senate Bill 1343 (Mitchell), Chapter 956, Statutes of 2018. This bill ensures that training is consistent with the Fair Employment and Housing Act (FEHA) training and clarifies that janitorial contractors must comply with the provisions specified in AB 1978 and SB 1343.
6. Transfer Authority and Data. Provides the Department of Human Resources (CalHR) with direct transfer authority for funds associated with CalHR’s reimbursable programs. The bill also requires CalHR to develop and maintain a tracking system to collect data regarding discrimination and harassment complaints across state agencies.
7. Exempt and Excluded Employees’ Other Post-Employment Benefits. Clarifies that new excluded or exempt employees who are not related to a bargaining unit, or an officer or employee of the executive branch who is not a member of state civil service, who are hired after July 1, 2019 are subject to a lower employer contribution rate for future retiree health benefits under the 80/80 percent employer contribution formula.
8. Payroll Deferral. Repeals the provision of current law that requires that on or after January 1, 2010, payments to employees paid on June 30 of each year be issued on July 1.
9. Administration of Social Security Benefits. Brings the Old Age Survivors and Insurance (OASI) revolving fund under the budget approval process to ensure administrative oversight and provide better insight and transparency into the State Social Security Administrator Program and OASI Fund reserves. Additionally, the bill increases the penalty for public agencies that fail to pay the social security administration assessment.
10. CalSavers. Makes provisions that require the Employment Development Department (EDD) to assess a penalty on any eligible employer that fails to make the CalSavers Retirement Savings Program available to employees operative only when the board notifies the Director of EDD that enforcement should proceed and the board and the Director of EDD agree to a reasonable implementation timeline, rather than six months after the board notifies the Director of EDD that the act will be implemented.
11. Secure Choice Retirement Savings. Requires the California Secure Choice Retirement Savings Investment Board to design and disseminate to employers an employee information packet that includes disclosure and opt-out forms to be made available to eligible employees. Current law requires these employee information packets to be made available through EDD.

Fiscal Effect: $5 million one-time General Fund.

Support: None on file.

Opposed: None on file.

-- END --