AB 1319: Bay Area Housing Finance Authority: housing revenue.

(1)Existing law, the San Francisco Bay Area Regional Housing Finance Act, establishes the Bay Area Housing Finance Agency to raise, administer, and allocate funding for affordable housing in the San Francisco Bay area, as defined, and provide technical assistance at a regional level for tenant protection, affordable housing preservation, and new affordable housing production. Existing law requires the Bay Area Housing Finance Authority and executive board of the Association of Bay Area Governments to form an advisory committee composed of 9 representatives with knowledge and experience in the areas of affordable housing finance and development, tenant protection, and housing preservation.

This bill would require the authority and executive board to form an advisory committee composed of at least 9 and no more than 11 representatives with knowledge and expertise in the areas of affordable housing finance, construction workforce, and development, tenant protection, and housing preservation.

The act provides the authority with various powers, including the power to place a measure on the ballot to raise revenue and allocate funds throughout the San Francisco Bay area, apply for and receive grants or loans from public and private entities, incur and issue bonds and other indebtedness, and otherwise incur liabilities or obligations. The act authorizes the authority to allocate and deploy financing to cities, counties, other public agencies within the San Francisco Bay area and private affordable housing developers to finance affordable housing development, as specified.

This bill would specify that the authority is limited to placing only one measure on the ballot per election. The bill would also authorize the authority to deploy financing to nonprofit corporations to finance affordable housing development, as specified.

Existing law authorizes a city or county, or an agency created pursuant to a joint powers agreement, to issue revenue bonds to defray the costs of acquiring home mortgages or making loans to lending institutions in order to enable them to make home mortgages, and the costs of studies and surveys, insurance premiums, underwriting fees, legal, accounting and marketing services incurred in connection with the issuance and sale of bonds, as specified.

This bill would authorize the authority to issue mortgage revenue bonds, pursuant to provisions described above; acquire, hold, develop, operate, and dispose of real property; and create one or more California limited liability companies of which the authority is the sole member.

(2)The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.

This bill would exempt from CEQA any actions taken by the authority to raise, administer, or allocate funding for tenant protection, affordable housing preservation, or new affordable housing production or to provide technical assistance consistent with the authoritys purpose.

(3)Existing law authorizes the executive board of the authority to impose a commercial linkage fee, as defined, in an amount not to exceed ten dollars ($10) per square foot, within the San Francisco Bay area, as specified. Existing law requires the expenditures of proceeds from a commercial linkage fee be limited to affordable housing production, preservation, and tenant protection programs.

This bill would authorize the expenditures of proceeds from a commercial linkage fee to include the authoritys related administrative costs.

(4)The act defines authority revenues to include, without limitation, revenues generated by any special tax, fee, or charge imposed by the authority, other than ad valorem property taxes. Existing law, the Revenue Bond Law of 1941, requires a local agency to annually publish a summary statement showing, among other things, the amount of gross revenues from revenue bonds.

This bill would revise and recast the definition of authority revenue to also include loan repayments, investment income, or income derived from the ownership or operation of real property. The bill would provide for prioritization of spending of authority revenues. The bill would require the authority to publish the above-described summary statement not more than 9 months after the close of each fiscal year.

(5)Existing law requires the authority to distribute regional housing revenue, as defined, in the form of a grant, loan, or other financing tool in a manner that achieves certain minimum shares over 5-year periods. In this regard, existing law requires 5% of those regional housing revenues for tenant protection programs for low- and moderate-income households, which includes, among other things, preeviction and eviction legal services and providing emergency rental assistance for lower income households.

This bill would include homelessness prevention services, as specified, as an eligible expense under tenant protection programs for low- and moderate-income households.

(6)Existing law requires the authority to distribute funds received through the authorized funding measures according to specified provisions, which in part require each county to adopt a county expenditure plan applicable to county housing revenue. Existing law requires, in order for the expenditure plan to be deemed complete, the expenditure plan to specify, among other things, a description of any specific project or program proposed to receive funding.

This bill would additionally require the plan to demonstrate that the county has consulted with each city in the county, excluding cities that receive a direct allocation.

(7)Existing law requires, if the authority proposes a measure that will generate revenues and that requires voter approval, the board of supervisors of the relevant county or counties to call a special election on the measure. Existing law requires each county included in the measure to use the exact ballot question, impartial analysis, and summary of the expenditure plan provided by the authority. Existing law requires these materials to include, among other things, an estimate of the number of affordable housing units to be built or preserved by household income category served, and a description of any specific projects planned to be funded.

This bill would instead require each county included in the measure to use the election materials provided by the authority, including the exact ballot question, impartial analysis, and full text of the ballot measure for inclusion in the voter information pamphlet. The bill would make conforming changes.

By changing the duties of local officials with respect to elections procedures for revenue measures on behalf of the authority, this bill would impose a state-mandated local program.

(8)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.