HomeMy WebLinkAboutStaff Report 5.C 02/27/2017Agenda Item #5.0
DATE: February 27, 2017
TO: Honorable Mayor and Members of the City Council
FROM: John C. Brown, City Manager
SUBJECT: Resolution Supporting Senate Bill SB 2 (Atkins), the Building Homes and Jobs
Act, and Senate Bill SB 3 (Beall), the Affordable Housing Bond Act of 2018
RECOMMENDATION
It is recommended that the City Council consider the attached Resolution Supporting Senate
Bills SB 2 and SB 3 which are statewide proposals to fund affordable housing and take action as
appropriate.
BACKGROUND
Few sources remain to fund affordable housing in California with redevelopment funding
eliminated and state housing bonds exhausted. Gov. Jerry Brown, in his proposed FY 2017 -18
budget, did not include money for affordable housing. The Senate through these bills is looking
to help fill the gap. While funds generated through SB 2 and SB 3 would not make up for the $1
billion annually generated for affordable housing through redevelopment agencies, these bills do
provide the first meaningful source of funding since the state ended redevelopment in 2011.
DISCUSSION
SB 2 (Atkins), the Building Homes and Jobs Act, establishes a permanent source of finding for
affordable rental or ownership housing, supportive housing, emergency shelters, transitional
housing and other housing needs through a $75 recordation fee on real estate documents. The fee
is estimated to generate hundreds of millions of dollars each year. SB 2 adds two new uses for
the fee - generated funds: local community plan updates and fiscal incentives for local
governments to approve new housing for low- income families. Fifty percent of the proceeds
from the fee would be allocated to local governments to be used to address housing needs at the
local level. It will also help leverage additional federal, local and private investment in affordable
housing, including nontraditional finding sources such as tax increment and imlovative
preventive services.
SB 3 (Beall), the Affordable Housing Bond Act of 2018, authorizes a $3 billion general
obligation bond to find existing and highly successful affordable housing programs and
infrastructure projects. This measure is similar to Proposition I C (2006) and allocates finds to
the same programs as the now - exhausted housing bond did, including:
• The Multifamily Housing Program;
• Transit oriented development;
• Infill infrastructure financing;
• Building Equity and Growth in Neighborhoods (BEGIN);
• Local Housing Trust matching grant;
• CalHome; and
• Joe Serna Fairnworker Housing.
The Council may recall that Petaluma used Prop 1 C fiends to help build the Logan Place
Apartments, a 66 unit multi - family affordable housing rental community which was completed
in December of 2013. Without these fiends, the project would not have been financially feasible.
Bond proceeds will help with housing for the homeless and those at risk of becoming homeless,
low- income workers, and will create homeownership opportunities for California's low- and
moderate - income earners.
With this new funding source, Petaluma would have the opportunity to apply for Multifamily
Housing Program funds for future projects. The last affordable housing development in
Petaluma was awarded $6 million through the Multifamily Housing Program.
Draft letters of support are attached for the City Council's review and approval.
FINANCIAL IMPACTS
There are no financial impacts beyond the staff time associated with preparing this report.
ATTACHMENTS
1. Resolution
2. Draft Letters
3. Legislative Counsel's Digest for SB 2 and SB 3
Awe
ATTACHMENT 1
RESOLUTION SUPPORTING SB 2 (ATKINS), THE BUILDING HOMES AND JOBS
ACT, AND SB 3 (BEALL), THE AFFORDABLE HOUSING BOND ACT OF 2018
WHEREAS, few sources remain for cities to fund affordable housing in California after
redevelopment was eliminated and state housing bonds were exhausted; and
WHEREAS, the FY 2017 -18 state budget does not include money for affordable housing;
and
WHEREAS, funds generated through SB 2 and SB 3 will not make up the $1 billion lost
in housing fluids, but they do provide the first meaningful source of funding since the state ended
redevelopment in 2011; and
WHEREAS, SB 2, the Building Homes and Jobs Act, would establish a permanent
source of funding for affordable rental or ownership housing, supportive housing, emergency
shelters, transitional housing and other housing needs through a $75 recordation fee on real
estate documents, estimated to generate hundreds of millions of dollars each year; and
WHEREAS, fifty percent of the proceeds would be allocated to local governments to be
used to address housing needs at the local level in addition to leveraging additional federal, local
and private investment in affordable housing, including nontraditional funding sources such as
tax increment and innovative preventive services; and
WHEREAS, SB 3, the Affordable Housing Bond Act of 2018, would, if adopted,
authorize the issuance of bonds in the amount of $3 billion pursuant to the State General
Obligation Bond Law; and
WHEREAS, the proceeds from the sale of these bonds would be used to finance various
existing housing programs, help with housing for the homeless and those at risk of becoming
homeless, low- income workers, create homeownership opportunities for California's low- and
moderate - income earners as well as provide infill infrastructure financing and affordable housing
matching grant programs.
NOW, THEREFORE, BE IT RESOLVED that the Petaluma City Council supports
Senate Bills SB 2 and SB 3 to address needed housing finding for cities and authorizes the
Mayor to sign letters of support on behalf of the Petaluma City Council.
ATTACHMENT 2
February 27, 2017
The Honorable Jim Beall
Member, State Senate
State Capitol, Room 5066
Sacramento, CA 95814
FAX: 916- 651 -4915
RE: SB 3 (Beall) — Affordable HousinIZ Bond Act of 2018
NOTICE OF SUPPORT
Dear Senator Beall,
The City of Petaluma supports your SB 3, the Affordable Housing Bond Act of 2018, which
authorizes a $3 billion general obligation bond to fiend affordable housing programs and infill
infrastructure projects.
Cities are in great need of assistance now that Proposition 46 and Proposition 1C fiends have
been allocated, $1.5 billion in annual redevelopment funding have been eliminated, and federal
investments in critical housing programs have been slashed 50 -77% from 2005 to 2015.
Petaluma received Prop 1 C fiends for the Logan Place Apartments, a 66 unit multi- family
affordable housing rental community in Petaluma which was completed in December of 2013.
Without these fiends, the project would not have been financially feasible.
With this new funding source, Petaluma would have the opportunity to apply for Multifamily
Housing Program fiends for future projects. The last affordable housing development in
Petaluma was awarded $6 million through the Multifamily Housing Program.
The lack of construction in the private housing market has resulted in increasing rents and home
prices well above the national average, while also playing a role in the state's homeless
population climbing to 116,000 after years of progress. SB 3 would help mitigate these
problems by infusing $3 billion into the affordable housing market.
For these reasons, the City of Petaluma supports SB 3 and applauds your leadership on this
important matter.
Sincerely,
David Glass
Mayor
cc: Members, Senate Housing and Transportation Conrnnittee; Fax 916 -445 -2209
Senator Bill Dodd, 3rd District; senator.dodd@senate.ca.gov
Assembly Member Marc Levine, 10 °i District; assemblymember.levine a,assembly.ca.goy
Nancy Bennett, nbennett: &acities.org
Jason Rhine, League of California Cities, jrhinegcacities.org
February 27, 2017
The Honorable Toni G. Atkins
Member, California State Senate
State Capitol, Room 4072
Sacramento, CA 95814
FAX: 916- 651 -4939
RE: SB 2 BuildinjZ Homes and Jobs Act
NOTICE OF SUPPORT
Dear Senator Atkins,
The City of Petaluma supports your SB 2, the Building Homes and Jobs Act. This measure
would generate hundreds of millions of dollars per year for affordable rental or ownership
housing, supportive housing, emergency shelters, transitional housing and other housing needs
via a $75 recordation fee on specified real estate documents.
Cities, including the City of Petaluma, are eager to help encourage the construction of affordable
housing, but with the loss of over $1 billion per year of redevelopment housing funds they lack
the resources to do so. While the timeliness of the environmental review, permitting, and
approval processes can always be improved to help reduce costs, affordable housing projects
require some form of financial assistance. This measure is a significant step in the right
direction.
Petaluma received Prop 1 C funds for the Logan Place Apartments, a 66 unit multi- family
affordable housing rental community in Petaluma which was completed in December of 2013.
Without these funds, the project would not have been financially feasible.
With this new funding source, Petaluma would have the opportunity to apply for Multifamily
Housing Program fiends for future projects. The last affordable housing development in
Petaluma was awarded $6 million through the Multifamily Housing Program.
SB 2 would provide an ongoing, permanent state source of funding for much needed affordable
housing projects. For these reasons, the City of Petaluma supports SB 2.
Sincerely,
David Glass
Mayor
cc: Chair and Members, Senate Housing and Transportation Committee, Fax 916 -445 -2209
Senator Bill Dodd, 3d District; senator.dodd @senate.ca.gov
Assembly Member Marc Levine, 10 °i District; assemblymember .levinegassembly.ca.gou
Nancy Bennett, iibeiiiiett@cacities.org
Jason Rhine, League of California Cities, 'rhr cacities.org
ATTACHMENT 3
SENATE BILL No. 2
Introduced by Senator Atkins
(Coauthors: Senators Beall, Bradford, Dodd, Hertzberg, Jackson,
Mitchell, Roth, Skinner, Wieckowski, and Wiener)
(Coauthors: Assembly Members Bonta and Thurmond)
December 5, 2016
An act to add Section 27388.1 to the Government Code, and to add
Chapter 2.5 (commencing with Section 50470) to Part 2 of Division 31
of the Health and Safety Code, relating to housing, and declaring the
urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 2, as introduced, Atkins. Building Homes and Jobs Act.
Under existing law, there are programs providing assistance for,
among other things, emergency housing, multifamily housing,
farmworker housing, homeownership for very low and low- income
households, and downpayment assistance for first -time homebuyers.
Existing law also authorizes the issuance of bonds in specified amounts
pursuant to the State General Obligation Bond Law. Existing law
requires that proceeds from the sale of these bonds be used to finance
various existing housing programs, capital outlay related to infill
development, brownfield cleanup that promotes infill development, and
housing - related parks.
This bill would enact the Building Homes and Jobs Act. The bill
would make legislative findings and declarations relating to the need
for establishing permanent, ongoing sources of funding dedicated to
affordable housing development. The bill would impose a fee, except
as provided, of $75 to be paid at the time of the recording of every real
estate instrument, paper, or notice required or permitted by law to be
recorded, per each single transaction per single parcel of real property,
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not to exceed $225. By imposing new duties on counties with respect
to the imposition of the recording fee, the bill would create a
state - mandated local program. The bill would require that revenues
from this fee, after deduction of any actual and necessary administrative
costs incurred by the county recorder, be sent quarterly to the
Department of Housing and Community Development for deposit in
the Building Homes and Jobs Find, which the bill would create within
the State Treasury. The bill would, upon appropriation by the
Legislature, require that 20% of the moneys in the fund be expended
for affordable owner - occupied workforce housing and 10% of the
moneys for housing purposes related to agricultural workers and their
families, and would authorize the remainder of the moneys in the fund
to be expended to support affordable housing, homeownership
opportunities, and other housing - related programs, as specified. The
bill would impose certain auditing and reporting requirements and would
establish the Building Homes and Jobs Trust Fund Governing Board
that would, among other things, review and approve recommendations
made by the Department of Housing and Community Development for
the distribution of moneys from the fund.
This bill would state the intent of the Legislature to enact legislation
that would create the Secretary of Housing within state govermuent to
oversee all activities related to housing in the state.
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 no reimbursement is required by this act
for a specified reason.
This bill would declare that it is to take effect immediately as an
urgency statute.
Vote: 2/3. Appropriation:
State - mandated local program
no. Fiscal committee: yes.
yes.
The people of the State of California do enact as follol -ns:
1 SECTION 1. This act shall be known as the Building Homes
2 and Jobs Act.
3 SEC. 2. (a) The Legislature finds and declares that having a
4 healthy housing market that provides an adequate supply of homes
5 affordable to Californians at all income levels is critical to the
6 economic prosperity and quality of life in the state.
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1 (b) The Legislature further finds and declares all of the
2 following:
3 (1) Funding approved by the state's voters in 2002 and 2006,
4 as of June 2015, has financed the construction, rehabilitation, and
5 preservation of over 14,000 shelter spaces and 245,000 affordable
6 homes. These numbers include thousands of supportive homes for
7 people experiencing homelessness. In addition, these funds have
8 helped tens of thousands of families become or remain
9 homeowners. Nearly all of the voter - approved funding for
10 affordable housing has been awarded.
11 (2) The requirement in the Community Redevelopment Law
12 that redevelopment agencies set aside 20 percent of tax increment
13 for affordable housing generated roughly $1 billion per year. With
14 the elimination of redevelopment agencies, this funding stream
15 has disappeared.
16 (3) In 2014, the Legislature committed 10 percent of ongoing
17 cap - and -trade funds for affordable housing that reduces greenhouse
18 gas emissions and dedicated $100 million in one -time funding for
19 affordable multifamily and permanent supportive housing. In
20 addition, the people of California thoughtfully approved the
21 repurposing of $600 million in already committed bond funds for
22 the creation of affordable rental and permanent supportive housing
23 for veterans through the passage of Proposition 41.
24 (4) In 2015, the Legislature approved $2 billion in revenue
25 bonds for the construction and rehabilitation of permanent
26 supportive housing for homeless individuals with mental illness
27 through the "No Place Like Home" initiative and increased funding
28 for the CalWORKS Housing Support Program to $47 million per
29 year. Another $45 million was directed to Emergency Solutions
30 Grants to fund rapid rehousing, outreach, shelters, and homeless
31 prevention and $10 million was provided to reduce homelessness
32 among families who are part of the child welfare system.
33 (5) Despite these investments, the need for affordable housing
34 in the state of California greatly exceeds the available resources,
35 demonstrated by the Public Policy Institute of California finding
36 that, as of January 2016, 31.5 percent of mortgaged homeowners
37 and 47 percent of all renters are spending more than 35 percent of
38 their household incomes on housing.
39 (6) California has 12 percent of the United States population,
40 but 20 percent of its homeless population. California has the highest
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I percentage of unsheltered homeless in the nation, with 64 percent
2 of homeless Californians not having shelter. California has 24
3 percent of the nation's homeless veterans population and one -third
4 of the nation's chronically homeless population. California also
5 has the largest populations of unaccompanied homeless children
6 and youth, with 28 percent of the national total.
7 (7) Furthermore, four of the top 10 metropolitan areas in the
8 country with the highest rate of homelessness are in the following
9 metropolitan areas in California: San Jose - Sunnyvale -Santa Clara,
10 Los Angeles -Long Beach -Santa Ana, Fresno, and Stockton.
11 (8) California continues to have the second lowest
12 homeownership rate in the nation, and the Los Angeles
13 metropolitan area is now a majority renter area. In fact, five of the
14 eight lowest homeownership rates are in metropolitan areas in
15 California.
16 (9) Los Angeles and Orange Counties have been identified as
17 the epicenter of overcrowded housing, and numerous studies have
18 shown that children in crowded homes have poorer health, worse
19 scores on mathematics and reading tests, and higher rates of
20 depression and behavioral problems —even when poverty is taken
21 into account.
22 (10) Millions of Californians are affected by the state's chronic
23 housing shortage, including seniors, veterans, people experiencing
24 chronic homelessness, working families, people with mental,
25 physical, or developmental disabilities, agricultural workers, people
26 exiting jails, prisons, and other state institutions, survivors of
27 domestic violence, and former foster and transition -aged youth.
28 (11) Eight of the top 10 hardest hit cities by the foreclosure
29 crisis in the nation were in California. They include the Cities of
30 Stockton, Modesto, Vallejo, Riverside, San Bernardino, Merced,
31 Bakersfield, and Sacramento.
32 (12) California's workforce continues to experience longer
33 commute times as persons in the workforce seek affordable housing
34 outside the areas in which they work. If California is unable to
35 support the construction of affordable housing in these areas,
36 congestion problems will strain the state's transportation system
37 and exacerbate greenhouse gas emissions.
38 (13) Many economists agree that the state's higher than average
39 unemployment rate is due in large part to massive shrinkage in the
40 construction industry from 2005 to 2009, including losses of nearly
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700,000 construction - related jobs, a 60- percent decline in
construction spending, and an 83- percent reduction in residential
permits. Restoration of a healthy construction sector will
significantly reduce the state's unemployment rate.
(14) The lack of sufficient housing impedes economic growth
and development by making it difficult for California employers
to attract and retain employees.
(15) To keep pace with continuing demand, the state should
identify and establish a permanent, ongoing source or sources of
funding dedicated to affordable housing development. Without a
reliable source of funding for housing affordable to the state's
workforce and most vulnerable residents, the state and its local
and private housing development partners will not be able to
continue increasing the supply of housing after existing housing
bond resources are depleted.
(16) The investment will leverage billions of dollars in private
investment, lessen demands on law enforcement and dwindling
health care resources as fewer people are forced to live on the
streets or in dangerous substandard buildings, and increase
businesses' ability to attract and retain skilled workers.
(17) In order to promote housing and homeownership
opportunities, the recording fee imposed by this act shall not be
applied to any recording made in connection with a sale of real
property. Purchasing a home is likely the largest purchase made
by Californians, and it is the intent of this act to not increase
transaction costs associated with these transfers.
SEC. 3. Section 27388.1 is added to the Government Code, to
read:
27388.1. (a) (1) Commencing January 1, 2018, and except as
provided in paragraph (2), in addition to any other recording fees
specified in this code, a fee of seventy -five dollars ($75) shall be
paid at the time of recording of every real estate instrument, paper,
or notice required or permitted by law to be recorded, except those
expressly exempted from payment of recording fees, per each
single transaction per parcel of real property. The fee imposed by
this section shall not exceed two hundred twenty -five dollars
($225). "Real estate instrument, paper, or notice" means a
document relating to real property, including, but not limited to,
the following: deed, grant deed, trustee's deed, deed of trust,
reconveyanee, quit claim deed, fictitious deed of trust, assignment
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1 of deed of trust, request for notice of default, abstract of judgment,
2 subordination agreement, declaration of homestead, abandonment
3 of homestead, notice of default, release or discharge, easement,
4 notice of trustee sale, notice of completion, UCC financing
5 statement, mechanic's lien, maps, and covenants, conditions, and
6 restrictions.
7 (2) The fee described in paragraph (1) shall not be imposed on
8 any real estate instrument, paper, or notice recorded in connection
9 with a transfer subject to the imposition of a documentary transfer
10 tax as defined in Section 11911 of the Revenue and Taxation Code
11 or on any real estate instrument, paper, or notice recorded in
12 connection with a transfer of real property that is a residential
13 dwelling to an owner- occupier.
14 (b) The fees, after deduction of any actual and necessary
15 administrative costs incurred by the county recorder in carrying
16 out this section, shall be remitted quarterly, on or before the last
17 day of the month next succeeding each calendar quarterly period,
18 to the Department of Housing and Community Development for
19 deposit in the California Homes and Jobs Trust Fund established
20 by Section 50470 of the Health and Safety Code, to be expended
21 for the purposes set forth in that section. In addition, the county
22 shall pay to the Department of Housing and Community
23 Development interest, at the legal rate, on any funds not paid to
24 the Controller before the last day of the month next succeeding
25 each quarterly period.
26 SEC. 4. Chapter 2.5 (commencing with Section 50470) is added
27 to Part 2 of Division 31 of the Health and Safety Code, to read:
28
29 CHAPTER 2.5. BUILDING HOMES AND JOBS ACT
30
31 Article 1. General Provisions
32
33 50470. (a) (1) There is hereby created in the State Treasury
34 the Building Homes and Jobs Trust Fund. All interest or other
35 increments resulting from the investment of moneys in the fund
36 shall be deposited in the fund, notwithstanding Section 16305.7
37 of the Government Code.
38 (2) Moneys in the Building Homes and Jobs Trust Fund shall
39 not be subject to transfer to any other field pursuant to any
40 provision of Part 2 (commencing with Section 16300) of Division
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1 4 of Title 2 of the Government Code, except to the Surplus Money
2 Investment Fund. Upon appropriation by the Legislature:
3 (A) Twenty percent of moneys in the fund shall be expended
4 for affordable owner- occupied workforce housing.
5 (B) Ten percent of the moneys in the fund shall be expended to
6 address affordable homeownership and rental housing opportunities
7 for agricultural workers and their families.
8 (C) The remainder of the moneys in the fund may be expended
9 for the following purposes:
10 (i) The development, acquisition, rehabilitation, and preservation
11 of rental housing that is affordable to extremely low, very low,
12 low -, and moderate - income households, including necessary
13 operating subsidies.
14 (ii) Affordable rental and ownership housing that meets the
15 needs of a growing workforce earning up to 120 percent of area
16 median income.
17 (iii) Matching portions of finds placed into local or regional
18 housing trust finds.
19 (iv) Matching portions of funds available through the Low and
20 Moderate Income Housing Asset Fund pursuant to subdivision (d)
21 of Section 34176 of the Health and Safety Code.
22 (v) Capitalized reserves for services connected to the creation
23 of new permanent supportive housing, including, but not limited
24 to, developments funded through the Veterans Housing and
25 Homelessness Prevention Program.
26 (vi) Emergency shelters, transitional housing, and rapid
27 rehousing.
28 (vii) Accessibility modifications.
29 (viii) Efforts to acquire and rehabilitate foreclosed or vacant
30 homes.
31 (ix) Homeownership opportunities, including, but not limited
32 to, down payment assistance.
33 (x) Grants to local and regional agencies to assist in the
34 development and updating of planning documents and zoning
35 ordinances in order to accelerate housing production, including,
36 but not limited to, General Plans, community plans, specific plans;
37 sustainable communities strategies, and local coastal programs.
38 (xi) Fiscal incentives or matching funds to local agencies that
39 approve new housing for extremely low, very low, low -, and
40 moderate- income households.
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1 (3) A state or local entity that receives an appropriation or
2 allocation pursuant to this chapter shall use no more than 5 percent
3 of that appropriation or allocation for costs related to the
4 administration of the housing program for which the appropriation
5 or allocation was made.
6 (b) Both of the following shall be paid and deposited in the
7 fiend:
8 (1) Any moneys appropriated and made available by the
9 Legislature for purposes of the fund.
10 (2) Any other moneys that may be made available to the
11 department for the purposes of the fund from any other source or
12 sources.
13 (c) If a local government does not expend the moneys allocated
14 to it, pursuant to this chapter, within five years of that allocation,
15 those moneys shall revert to, and be paid and deposited in, the
16 fiend.
17 50470.5. For purposes of this chapter:
18 (a) "Department" means the Department of Housing and
19 Community Development.
20 (b) "Governing Board" means the Building Homes and Jobs
21 Trust Fund Governing Board.
22 50470.7. (a) The Building Homes and Jobs Trust Fund
23 Governing Board is hereby established. The governing board shall
24 include one representative from the department, one representative
25 from the California Housing Finance Agency, and one
26 representative from the Office of the Treasurer. The governing
27 board shall consist also include no fewer than two real estate
28 licensees, one from northern California and one from southern
29 California, each with not less than 10 years of real estate experience
30 and membership in a real estate trade organization with not less
31 than 20,000 licensees. The governing board shall include a local
32 government official from northern and southern California, and a
33 representative from the northern and southern California home
34 building industry, all of whom shall be appointed by the Governor.
35 (b) (1) The governing board also shall include six public
36 members. Two of the public members must be representative of
37 nonprofit affordable housing development, one appointed by the
38 Speaker of the Assembly and one appointed by the Senate Rules
39 Committee. Two of the public members must be representative of
40 for -profit affordable housing development, one appointed by the
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1 Speaker of the Assembly and one appointed by the Senate Rules
2 Committee. The Speaker of the Assembly and the Senate Rules
3 Committee shall each appoint one additional public member who
4 shall be representative of, or have experience in, one or more of
5 the following areas:
6 (A) Private sector lending.
7 (B) For -profit affordable housing development.
8 (C) Nonprofit affordable housing development.
9 (D) Working with special needs populations, including persons
10 experiencing homelessness.
11 (E) Architecture.
12 (F) Housing development consultation.
13 (G) Academia related to housing issues.
14 (2) Overall public membership shall contribute to a balance
15 among geographic areas and between rural and urban interests.
16 50471. (a) In order . to maximize efficiency and address
17 comprehensive needs, the department, in consultation with the
18 California Housing Finance Agency, the California Tax Credit
19 Allocation Committee, and the California Debt Limit Allocation
20 Committee, shall develop and submit to the Legislature, at the time
21 of the Department of Finance's adjustments to the proposed
22 2018 -19 fiscal year budget pursuant to subdivision (e) of Section
23 13308 of the Government Code, the Building Homes and Jobs
24 Investment Strategy. Notwithstanding Section 10231.5 of the
25 Government Code, commencing with the 2023 -24 fiscal year, and
26 every five years thereafter, concurrent with the release of the
27 Governor's proposed budget, the department shall update the
28 investment strategy and submit it to the Legislature. The governing
29 board shall review and advise the department regarding the
30 investment strategy prior to its submission to the Legislature. The
31 investment strategy shall do all of the following:
32 (1) Identify the statewide needs, goals, objectives, and outcomes
33 for housing for a five -year time period. Goals should include targets
34 of the total number for affordable homes created and preserved
35 with the funds.
36 (2) Meet the following minimum objectives:
37 (A) Encourage economic development and job creation by
38 helping to meet the housing needs of a growing workforce earning
39 up to 120 percent of area median income.
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1 (B) Identify opportunities for coordination among state
2 departments and agencies to achieve greater efficiencies, increase
3 the amount of federal investment in production, services, and
4 operating costs of housing, and promote energy efficiency in
5 housing produced.
6 (C) Incentivize the use and coordination of nontraditional
7 funding sources including philanthropic funds, local realignment
8 funds, nonhousing tax increment, the federal Patient Protection
9 and Affordable Care Act, and other resources.
10 (D) Incentivize innovative approaches that produce cost savings
11 to local and state services by reducing the instability of housing
12 for frequent, high -cost users of hospitals, jails, detoxification
13 facilities, psychiatric hospitals, and emergency shelters.
14 (3) Provide for a geographically balanced distribution of funds,
15 including a 50 percent direct allocation of funds to local
16 governments.
17 (4) In order to receive an allocation a local government shall:
18 (A) Submit a plan to the department detailing how allocated
19 funds will be used by the local government in manner consistent
20 with paragraph (2) of subdivision (a) of Section 50470.
21 (B) Have a compliant housing element with the state, submit
22 annual reports pursuant to Section 65400 of the Government Code,
23 and submit an annual report to the department that provides
24 ongoing tracking of the uses and expenditures of any allocated
25 funds..
26 (C) Emphasize investments that serve households that are at or
27 below 60 percent of area median income.
28 (b) Before submitting the Building Homes and Jobs Investment
29 Strategy to the Legislature, the department shall hold at least four
30 public workshops in different regions of the state to further inform
31 the development of the investment strategy.
32 (c) Expenditure requests contained in the Governor's proposed
33 budget shall be consistent with the Building Homes and Jobs
34 Investment Strategy developed and submitted pursuant to this part.
35 Moneys in the Building Homes and Jobs Trust Fund shall be
36 appropriated through the annual Budget Act.
37 (d) The Building Homes and Jobs Investment Strategy and
38 updates required by this section shall be submitted pursuant to
39 Section 9795 of the Government Code.
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(e) The governing board shall have the authority to review and
approve department recommendations for all funds distributed
from the Building Homes and Jobs Trust Fund.
Article 2. Audits and Reporting
50475. The California State Auditor's Office shall conduct
periodic audits to ensure that the annual allocation to individual
programs is awarded by the department in a timely fashion
consistent with the requirements of this chapter. The first audit
shall be conducted no later than 24 months from the effective date
of this section.
50476. (a) In its annual report to the Legislature pursuant to
Section 50408, the department shall report how funds that were
made available pursuant to this chapter and allocated in the prior
year were expended, including efforts to promote a geographically
balanced distribution of funds. The report shall also assess the
impact of the investment on job creation and the economy. With
respect to any awards made specifically to house or support persons
who are homeless or at risk of homelessness, the report shall
include an analysis of the effectiveness of the fielding in allowing
these households to retain permanent housing. The department
shall make the report available to the public on its Internet Web
site.
(b) (1) In the report, the department shall make a determination
of whether any of the moneys derived from fees collected pursuant
to Section 27388.1 of the Government Code are being allocated
by the state for any purpose not authorized by Section 50470 and
shall share the information with the county recorders.
(2) If the department determines that any moneys derived from
fees collected pursuant to Section 27388.1 of the Govermment
Code are being allocated by the state for a purpose not authorized
by Section 50470, the county recorders shall, upon notice of the
determination, immediately cease collection of the fees imposed
by Section 27388.1 of the Government Code, and shall resume
collection of those fees only upon notice that the moneys derived
from fees collected pursuant to Section 23788.1 of the Government
Code are being allocated by the state only for a purpose authorized
by Section 50470.
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1 SEC. 5. (a) The Legislature finds and declares that the housing
2 market plays a critical role in the functioning of the California
3 economy.
4 (b) The Legislature further finds and declares all of the
5 following:
6 (1) The need for housing is something every Californian
7 encounters.
8 (2) Adequate and stable housing is a crucial component of all
9 Californians' quality of life.
10 (3) The expenditure for housing is one of the largest expenses
11 all Californians undertake in their day -to -day lives.
12 (4) Housing and housing - related activities are of such significant
13 importance to the state that it warrants a clear and unified voice
14 in state government.
15 (c) It is the intent of the Legislature to enact legislation that
16 would create a Secretary of Housing within state government to
17 oversee all activities related to housing in the state. In creating this
18 position, it is the intent of the Legislature that all professional
19 entities that play a role in the housing market would be authorized
20 to be incorporated in order to have a clearer and more unified
21 approach to housing in California.
22 SEC. 6. No reimbursement is required by this act pursuant to
23 Section 6 of Article XIII B of the California Constitution because
24 a local agency or school district has the authority to levy service
25 charges, fees, or assessments sufficient to pay for the program or
26 level of service mandated by this act, within the meaning of Section
27 17556 of the Government Code.
28 SEC. 7. This act is an urgency statute necessary for the
29 immediate preservation of the public peace, health, or safety within
30 the meaning of Article IV of the California Constitution and shall
31 go into immediate effect. The facts constituting the necessity are:
32 In order to provide affordable housing opportunities at the earliest
33 possible time, it is necessary for this act to take effect immediately.
I
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SENATE BILL No. 3
Introduced by Senator Beall
December 5, 2016
An act to add Part 16 (commencing with Section 54000) to Division
31 of the Health and Safety Code, relating to housing, by providing the
funds necessary therefor through an election for the issuance and sale
of bonds of the State of California and for the handling and disposition
of those fiends, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 3, as introduced, Beall. Affordable Housing Bond Act of 2018.
Under existing law, there are programs providing assistance for,
among other things, emergency housing, multifamily housing,
farmworker housing, home ownership for very low and low- income
households, and downpayment assistance for first -time home buyers.
Existing law also authorizes the issuance of bonds in specified amounts
pursuant to the State General Obligation Bond Law and requires that
proceeds from the sale of these bonds be used to finance various existing
housing programs, capital outlay related to infill development,
brownfield cleanup that promotes infill development, and
housing - related parks.
This bill would enact the Affordable Housing Bond Act of 2018,
which, if adopted, would authorize the issuance of bonds in the amount
of $3,000,000,000 pursuant to the State General Obligation Bond Law.
Proceeds from the sale of these bonds would be used to finance various
existing housing programs, as well as infill infrastructure financing and
affordable housing matching grant programs, as provided.
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SB 3
2
This bill would provide for submission of the bond act to the voters
at the November 6, 2018, statewide general election in accordance with
specified law.
This bill would declare that it is to take effect immediately as an
urgency statute.
Vote: 2/3. Appropriation:
State - mandated local program
no. Fiscal committee: yes.
no.
The people of the State of California do enact as folloliu.
1 SECTION 1. The Legislature finds and declares all of the
2 following:
3 (a) California is experiencing an extreme housing shortage with
4 2.2 million extremely low income and very low income renter
5 households competing for only 664,000 affordable rental homes.
6 This leaves more than 1.54 million of California's lowest income
7 households without access to affordable housing.
8 (b) While homelessness across the United States is in an overall
9 decline, homelessness in California is rising. In 2015, California
10 had 115,738 homeless people, which accounted for 21 percent of
11 the nation's homeless population. This is an increase of 1.6 percent
12 from the prior year. California also had the highest rate of
13 unsheltered people, at 64 percent or 73,699 people; the largest
14 numbers of unaccompanied homeless children and youth, at 10,416
15 people or 28 percent of the national total; the largest number of
16 veterans experiencing homelessness, at 11,311 or 24 percent of
17 the national homeless veteran population; and the second largest
18 number of people in families with chronic patterns of homelessness,
19 at 22,582 or 11 percent of the state's homeless family population.
20 (c) California is home to 21 of the 30 most expensive rental
21 housing markets in the country, which has had a disproportionate
22 impact on the middle class and the working poor. California
23 requires the third highest wage in the country to afford housing,
24 behind Hawaii and Washington, D.C. The fair market rent, which
25 indicates the amount of money that a given property would require
26 if it were open for leasing, for a two - bedroom apartment is $1,3 86.
27 To afford this level of rent and utilities, without paying more than
28 30 percent of income on housing, a household must earn an hourly
29 "housing wage" of $26.65 per hour. This means that a person
30 earning minimum wage must work an average of three jobs to pay
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3— SB 3
1 the rent for a two - bedroom unit. In some areas of the state, these
2 numbers are even higher.
3 (d) Low - income families are forced to spend more and more of
4 their income on rent, which leaves little else for other basic
5 necessities. Many renters must postpone or forgo home ownership,
6 live in more crowded housing, commute further to work, or, in
7 some cases, choose to live and work elsewhere.
8 (e) California has seen a significant reduction of state funding
9 in recent years. The funds from Proposition 46 of 2002 and
10 Proposition 1 C of 2006, totaling nearly $5 billion for a variety of
11 affordable housing programs, have been expended. Combined with
12 the loss of redevelopment funds, $1.5 billion of annual state
13 investment dedicated to housing has been lost, leaving several
14 critical housing programs unfunded.
15 (f) High housing costs and the shortage of housing stock in
16 California directly affect the future health of California's economy
17 and, given the staggering numbers indicated above, bold action is
18 necessary. Investment in existing and successful housing programs
19 to expand the state's housing stock should benefit California's
20 homeless and low- income earners, as well as some of the state's
21 most vulnerable populations, including foster and at -risk youth,
22 persons with developmental and physical disabilities, farmworkers,
23 the elderly, single parents with children, and survivors of domestic
24 violence. Investments should also be made in housing for Medi -Cal
25 recipients served through a county's Section 1115 Waiver Whole
26 Person Care Pilot program and family day care providers.
27 (g) Investment in housing creates jobs and provides local
28 benefits. The estimated one -year impacts of building 100 rental
29 apartments in a typical local area include $11.7 million in local
30 income, $2.2 million in taxes and other revenue for local
31 governments, and 161 local jobs or 1.62 jobs per apartment. The
32 additional annually recurring impacts of building 100 rental
33 apartments in a typical local area include $2.6 million in local
34 income, $503,000 in taxes and other revenue for local govermnents,
35 and 44 local jobs or .44 jobs per apartment.
36 SEC. 2. Part 16 (commencing with Section 54000) is added to
37 Division 31 of the Health and Safety Code, to read:
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SB 3
1 PART 16. AFFORDABLE HOUSING BOND ACT OF 2018
2
3 CHAPTER 1. GENERAL PROVISIONS
4
5 54000. This part shall be known, and may be cited, as the
6 Affordable Housing Bond Act of 2018.
7 54002. As used in this part, the following terms have the
8 following meanings:
9 (a) "Board" means the Department of Housing and Community
10 Development for programs administered by the department, and
11 the California Housing Finance Agency for programs administered
12 by the agency.
13 (b) "Conuuittee" means the Housing Finance Committee created
14 pursuant to Section 53524 and continued in existence pursuant to
15 Sections 53548 and 54014.
16 (c) "Fund" means the Affordable Housing Bond Act Trust Fund
17 of 2018 created pursuant to Section 54006.
18 54004. This part shall only become operative upon adoption
19 by the voters at the November 6, 2018, statewide general election.
20
21 CHAPTER 2. AFFORDABLE HOUSING BOND ACT TRUST FUND
22 OF 2018 AND PROGRAM
23
24 54006. The Affordable Housing Bond Act Trust Fund of 2018
25 is hereby created within the State Treasury. It is the intent of the
26 Legislature that the proceeds of bonds deposited in the fund shall
27 be used to fund the housing - related programs described in this
28 chapter. The proceeds of bonds issued and sold pursuant to this
29 part for the purposes specified in this chapter shall be allocated in
30 the following manner:
31 (a) One billion five hundred million dollars ($1,500,000,000)
32 to be deposited in the Multifamily Housing Account, which is
33 hereby created in the fund. Upon appropriation by the Legislature,
34 the moneys in the account may be appropriated for the Multifamily
35 Housing Program authorized by Chapter 6.7 (commencing with
36 Section 50675) of Part 2, to be expended to assist in the new
37 construction, rehabilitation, and preservation of permanent and
38 transitional rental housing for persons with incomes of up to 60
39 percent of the area median income (AMI).
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1 (b) Six hundred million dollars ($600,000,000) to be deposited
2 in the Transit- Oriented Development and Infill Infrastructure
3 Account, which is hereby created within the find. The moneys in
4 the account shall be used for the following purposes:
5 (1) Two hundred million dollars ($200,000,000) to be deposited
6 into the Transit - Oriented Development Implementation Fund,
7 established pursuant to Section 53561, for expenditure, upon
8 appropriation by the Legislature, pursuant to the Transit - Oriented
9 Development Implementation Program authorized by Part 13
10 (commencing with Section 53560) to provide local assistance to
11 cities, counties, cities and counties, transit agencies, and developers
12 for the purpose of developing or facilitating the development of
13 higher density uses within close proximity to transit stations that
14 will increase public transit ridership. These funds may also be
15 expended for any authorized purpose of this program.
16 (2) Three hundred million dollars ($300,000,000) to be deposited
17 in the Infill Infrastructure Financing Account, which is hereby
18 created within the fiend. Moneys in the account shall be available,
19 upon appropriation by the Legislature, pursuant to the Infill
20 Incentive Grant Program of 2007 established by Section 53545.13
21 for infill incentive grants to assist in the new construction and
22 rehabilitation of infrastructure that supports high - density affordable
23 and mixed - income housing in locations designated as infill,
24 including, but not limited to, any of the following:
25 (A) Park creation, development, or rehabilitation to encourage
26 infill development.
27 (B) Water, sewer, or other public infrastructure costs associated
28 with infill development.
29 (C) Transportation improvements related to infill development
30 projects.
31 (D) Traffic mitigation.
32 These funds may also be expended for any authorized purpose
33 of this program.
34 (3) One hundred million dollars ($100,000,000) to be deposited
35 into the Building Equity and Growth in Neighborhoods (BEGIN)
36 Program Fund, established pursuant to Section 50860, for
37 expenditure, upon appropriation by the Legislature, pursuant to
38 the BEGIN Program authorized by Chapter 14.5 (commencing
39 with Section 50860) of Part 2 to make grants to qualifying cities,
40 counties, or cities and counties that shall be used for downpayment
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SB 3 — 6
1 assistance to qualifying first -time home buyers or low- and
2 moderate- income buyers purchasing newly constructed homes in
3 a BEGIN project. These funds may also be expended for any
4 authorized purpose of this program.
5 (c) Six hundred million dollars ($600,000,000) to be deposited
6 in the Special Populations Housing Account, which is hereby
7 created within the fund. The moneys in the account shall be used
8 for the following purposes:
9 (1) Three hundred million dollars ($300,000,000) to be deposited
10 in the Joe Serna, Jr. Farmworker Housing Grant Fund, established
11 pursuant to Section 50517.5, for expenditure, upon appropriation
12 by the Legislature, to fund grants or loans, or both, for local public
13 entities, nonprofit corporations, limited liability companies, and
14 limited partnerships, for the construction or rehabilitation of
15 housing for agricultural employees and their families or for the
16 acquisition of manufactured housing as part of a program to address
17 and remedy the impacts of current and potential displacement of
18 farmworker families from existing labor camps, mobilehome parks,
19 or other housing. These fiends may also be expended for any
20 authorized purpose of this program.
21 (2) Three hundred million dollars ($300,000,000) to be deposited
22 in the Local Housing Trust Matching Grant Program Account,
23 which is hereby created within the fund. Moneys in the account
24 shall be available, upon appropriation by the Legislature, pursuant
25 to the Local Housing Trust Fund Matching Grant Program
26 established by Section 50842.2 to fund competitive grants or loans
27 to local housing trust funds that develop, own, lend, or invest in
28 affordable housing and used to create pilot programs to demonstrate
29 innovative, cost - saving approaches to creating or preserving
30 affordable housing. Local housing trust funds shall be derived on
31 an ongoing basis from private contribution or governmental sources
32 that are not otherwise restricted in use for housing programs. These
33 funds may also be expended for any authorized purpose of this
34 program.
35 (d) Three hundred million dollars ($300,000,000) to be deposited
36 in the Home Ownership Development Account, which is hereby
37 created within the find. The moneys in the account shall be, upon
38 appropriation by the Legislature, available for the CalHome
39 Program authorized by Chapter 6 (commencing with Section
40 50650) of Part 2, to provide direct, forgivable loans to assist
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1 development projects involving multiple home ownership units,
2 including single- family subdivisions, for self -help mortgage
3 assistance programs, and for manufactured homes. These fiends
4 may also be expended for any authorized purpose of this program.
5 54008. (a) The Legislature may, from time to time, amend
6 any law related to programs to which funds are, or have been,
7 allocated pursuant to this chapter for the purposes of improving
8 the efficiency and effectiveness of those programs or to further
9 the goals of those programs.
10 (b) The Legislature may amend this chapter to reallocate the
11 proceeds of bonds issued and sold pursuant to this part among the
12 programs to which funds are to be allocated pursuant to this chapter
13 as necessary to effectively promote the development of affordable
14 housing in this state.
15
16 CHAPTER 3. FISCAL PROVISIONS
17
18 54010. Bonds in the total amount of three billion dollars
19 ($3,000,000,000), exclusive of refunding bonds issued pursuant
20 to Section 54026, or so much thereof as is necessary as determined
21 by the committee, are hereby authorized to be issued and sold for
22 carrying out the purposes expressed in this part and to reimburse
23 the General Obligation Bond Expense Revolving Fund pursuant
24 to Section 16724.5 of the Government Code. All bonds herein
25 authorized which have been duly issued, sold, and delivered as
26 provided herein shall constitute valid and binding general
27 obligations of the state, and the Rill faith and credit of the state is
28 hereby pledged for the punctual payment of both principal of and
29 interest on those bonds when due.
30 54012. The bonds authorized by this part shall be prepared,
31 executed, issued, sold, paid, and redeemed as provided in the State
32 General Obligation Bond Law (Chapter 4 (commencing with
33 Section 16720) of Part 3 of Division 4 of Title 2 of the Government
34 Code), except subdivisions (a) and (b) of Section 16727 of the
35 Government Code to the extent that those provisions are
36 inconsistent with this part, and all of the provisions of that law as
37 amended from time to time apply to the bonds and to this part,
38 except as provided in Section 54028, and are hereby incorporated
39 in this part as though set forth in frill in this part.
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SB3 . -8—
1 54014. (a) Solely for the purpose of authorizing the issuance
2 and sale, pursuant to the State General Obligation Bond Law, of
3 the bonds authorized by this part, the committee is continued in
4 existence. For the purposes of this part, the Housing Finance
5 Committee is "the committee" as that terin is used in the State
6 General Obligation Bond Law.
7 (b) The committee may adopt guidelines establishing
8 requirements for administration of its financing programs to the
9 extent necessary to protect the validity of, and tax exemption for,
10 interest on the bonds. The guidelines shall not constitute rules,
11 regulations, orders, or standards of general application and are not
12 subject to Chapter 3.5 (commencing with Section 113 40) of Part
13 1 of Division 3 of Title 2 of the Government Code.
14 (c) For the purposes of the State General Obligation Bond Law,
15 the Department of Housing and Community Development is
16 designated the "board" for programs administered by the
17 department, and the California Housing Finance Agency is the
18 "board" for programs administered by the agency.
19 54016. Upon request of the board stating that funds are needed
20 for purposes of this part, the committee shall determine whether
21 or not it is necessary or desirable to issue bonds authorized pursuant
22 to this part in order to carry out the actions specified in Section
23 54006, and, if so, the amount of bonds to be issued and sold.
24 Successive issues of bonds may be authorized and sold to carry
25 out those actions progressively, and are not required to be sold at
26 any one time. Bonds may bear interest subject to federal income
27 tax.
28 54018. There shall be collected annually, in the same manner
29 and at the same time as other state revenue is collected, a sum of
30 money in addition to the ordinary revenues of the state, sufficient
31 to pay the principal of, and interest on, the bonds each year. It is
32 the duty of all officers charged by law with any duty in regard to
33 the collections of state revenues to do or perform each and every
34 act which is necessary to collect that additional sum.
35 54020. Notwithstanding Section 13340 of the Government
36 Code, there is hereby appropriated from the General Fund in the
37 State Treasury, for the purposes of this part, an amount that will
38 equal the total of both of the following:
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9 — SB 3
1 (a) The sum annually necessary to pay the principal of, and
2 interest on, bonds issued and sold pursuant to this part, as the
3 principal and interest become due and payable.
4 (b) The sum which is necessary to carry out Section 54024,
5 appropriated without regard to fiscal years.
6 54022. The board may request the Pooled Money Investment
7 Board to make a loan from the Pooled Money Investment Account,
8 in accordance with Section 16312 of the Government Code, for
9 purposes of this part. The amount of the request shall not exceed
10 the amount of the unsold bonds that the committee has, by
11 resolution, authorized to be sold, excluding any refunding bonds
12 authorized pursuant to Section 54026, for purposes of this part,
13 less any amount withdrawn pursuant to Section 54024. The board
14 shall execute any documents as required by the Pooled Money
15 Investment Board to obtain and repay the loan. Any amount loaned
16 shall be deposited in the fund to be allocated in accordance with
17 this part.
18 54024. For purposes of carrying out this part, the Director of
19 Finance may, by executive order, authorize the withdrawal from
20 the General Fund of any amount or amounts not to exceed the
21 amount of the unsold bonds that the committee has, by resolution,
22 authorized to be sold, excluding any refunding bonds authorized
23 pursuant to Section 54026, for purposes of this part, less any
24 amount withdrawn pursuant to Section 54022. Any amounts
25 withdrawn shall be deposited in the fund to be allocated in
26 accordance with this part. Any moneys made available under this
27 section shall be returned to the General Fund, plus the interest that
28 the amounts would have earned in the Pooled Money Investment
29 Account, from moneys received from the sale of bonds which
30 would otherwise be deposited in that fiend.
31 54026. The bonds maybe refunded in accordance with Article
32 6 (commencing with Section 16780) of Chapter 4 of Part 3 of
33 Division 4 of Title 2 of the Government Code. Approval by the
34 electors of this act shall constitute approval of any refunding bonds
35 issued to refund bonds issued pursuant to this part, including any
36 prior issued refunding bonds. Any bond refunded with the proceeds
37 of a refunding bond as authorized by this section may be legally
38 defeased to the extent permitted by law in the manner and to the
39 extent set forth in the resolution, as amended from time to time,
40 authorizing that refunded bond.
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SB 3 —10
1 54028. Notwithstanding any provisions in the State General
2 Obligation Bond Law, the maturity date of any bonds authorized
3 by this part shall not be later than 35 years from the date of each
4 such bond. The maturity of each series shall be calculated from
5 the date of each series.
6 54030, The Legislature hereby finds and declares that,
7 inasmuch as the proceeds from the sale of bonds authorized by
8 this part are not "proceeds of taxes" as that term is used in Article
9 XIII B of the California Constitution, the disbursement of these
10 proceeds is not subject to the limitations imposed by that article.
11 54032. Notwithstanding any provision of the State General
12 Obligation Bond Law with regard to the proceeds from the sale of
13 bonds authorized by this part that are subject to investment under
14 Article 4 (commencing with Section 16470) of Chapter 3 of Part
15 2 of Division 4 of Title 2 of the Government Code, the Treasurer
16 may maintain a separate account for investment earnings, may
17 order the payment of those earnings to comply with any rebate
18 requirement applicable under federal law, and may otherwise direct
19 the use and investment of those proceeds so as to maintain the
20 tax - exempt status of tax - exempt bonds and to obtain any other
21 advantage under federal law on behalf of the funds of this state.
22 54034. All moneys derived from premiums and accrued interest
23 on bonds sold pursuant to this part shall be transferred to the
24 General Fund as a credit to expenditures for bond interest;
25 provided, however, that amounts derived from premiums may be
26 reserved and used to pay the costs of issuance of the related bonds
27 prior to transfer to the General Fund.
28 SEC. 3. Section 2 of this act shall become operative upon the
29 adoption by the voters of the Affordable Housing Bond Act of
30 2018.
31 SEC. 4. Section 2 of this act shall be submitted by the Secretary
32 of State to the voters at the November 6, 2018, statewide general
33 election.
34 SEC. 5. This act is an urgency statute necessary for the
35 immediate preservation of the public peace, health, or safety within
36 the meaning of Article IV of the Constitution and shall go into
37 immediate effect. The facts constituting the necessity. are:
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1 In order to maximize the time available for the analysis and
2 preparation of the bond act proposed by Section 2 of this act, it is
3 necessary that this act take effect immediately.
X
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