BILL NUMBER: SB 1689	ENROLLED
	BILL TEXT

	PASSED THE ASSEMBLY  MAY 5, 2006
	PASSED THE SENATE  MAY 4, 2006
	AMENDED IN SENATE  MAY 4, 2006
	AMENDED IN SENATE  MAY 3, 2006

INTRODUCED BY   Senator Perata
   (Principal coauthor: Assembly Member Nunez)

                        FEBRUARY 24, 2006

   An act to add Part 12 (commencing with Section 53540) and Part 13
(commencing with Section 53560) 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
funds, and declaring the urgency thereof, to take effect
immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1689, Perata   Housing and Emergency Shelter Trust Fund Act of
2006.
   Under existing law, there are programs providing assistance for,
among other things, multifamily housing, emergency housing,
farmworker housing, home ownership for very low and low-income
households, and downpayment assistance for first-time homebuyers.
   This bill would enact the Housing and Emergency Shelter Trust Fund
Act of 2006, which, if adopted, would authorize the issuance of
bonds in the amount of $2,850,000,000 pursuant to the State General
Obligation Bond Law. Proceeds from the sale of these bonds would be
used to finance various existing housing programs, capital outlay
related to infill development, brownfield cleanup that promotes
infill development, and housing-related parks.
   The bill would also establish the Transit-Oriented Development
Implementation Program, to be administered by the Department of
Community Housing and Development. The program would receive funding
from the proceeds of the bond act enacted by this bill.
   The bill would provide for submission of the bond act to the
voters at the November 7, 2006, statewide general election in
accordance with specified law.
  This bill would declare that it is to take effect immediately as an
urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares as follows:
   (a) Funding approved by the state's voters in 2002 for greater
production of affordable housing in California financed the
construction, rehabilitation, or preservation of 17,700 affordable
apartments, created or rehabilitated 9,055 shelter spaces, and helped
nearly 18,000 families become or remain homeowners. Nearly all of
the voter-approved funding for affordable housing is expected to be
awarded by the end of 2006.
   (b) Only 14 percent of families statewide are able to afford the
median-priced home in California, now estimated at more than five
hundred sixty-one thousand dollars ($561,000). California is home to
21 of the 25 least affordable metropolitan areas in the country for
home ownership and 9 of the 10 least affordable counties nationwide
for renters.
   (c) Increasingly, California working families endure longer
commute times as they seek affordable housing outside of the urban
areas in which they work. Commute times in each of the state's 10
most populous counties have risen by double-digit percentages over
the last 10 years.
   (d) California's congestion problems and strain on its
transportation system are made worse by the lack of available
affordable housing in the state's urban areas. To the extent
additional affordable housing can be maintained or provided in the
state's urban areas, additional traffic and related expenditures on
transportation facilities is avoidable, and allows limited
transportation resources to be deployed more efficiently.
  SEC. 2.  Part 12 (commencing with Section 53540) is added to
Division 31 of the Health and Safety Code, to read:

      PART 12.  HOUSING AND EMERGENCY SHELTER TRUST FUND ACT OF 2006

      CHAPTER 1.  General Provisions

   53540.  (a) This part shall be known as the Housing and Emergency
Shelter Trust Fund Act of 2006.
   (b) This part shall only become operative upon adoption by the
voters at the November 7, 2006, statewide general election.
   53541.  As used in this part, the following terms have the
following meanings:
   (a) "Board" means the Department of Housing and Community
Development for programs administered by the department, and the
California Housing Finance Agency for programs administered by the
agency.
   (b) "Committee" means the Housing Finance Committee created
pursuant to Section 53524 and continued in existence pursuant to
Section 53548.
   (c) "Fund" means the Housing and Emergency Shelter Trust Fund
created pursuant to Section 53545.
      CHAPTER 2.  Housing and Emergency Shelter Trust Fund of 2006
and Program

   53545.  The Housing and Emergency Shelter Trust Fund of 2006 is
hereby created in the State Treasury. The Legislature intends that
the proceeds of bonds deposited in the fund shall be used to fund the
housing-related programs described in this chapter over the course
of the next decade. The proceeds of bonds issued and sold pursuant to
this part for the purposes specified in this chapter shall be
allocated in the following manner:
   (a) (1) One billion five hundred million dollars ($1,500,000,000)
to be deposited in the Affordable Housing Account, which is hereby
created in the fund. Notwithstanding Section 13340 of the Government
Code, the money in the account shall be continuously appropriated in
accordance with the following schedule:
   (A) (i) Three hundred forty-five million dollars ($345,000,000)
shall be transferred to the Housing Rehabilitation Loan Fund to be
expended for the Multifamily Housing Program authorized by Chapter
6.7 (commencing with Section 50675) of Part 2. The priorities
specified in Section 50675.13 shall apply to the expenditure of funds
pursuant to this clause.
   (ii) Fifty million dollars ($50,000,000) shall be transferred to
the Housing Rehabilitation Loan Fund to be expended under the
Multifamily Housing Program authorized by Chapter 6.7 (commencing
with Section 50675) of Part 2 for housing meeting the definitions in
paragraphs (2) and (3) of subdivision (e) of Section 11139.3 of the
Government Code.  The department may provide higher per-unit loan
limits as necessary to achieve affordable housing costs to the target
population. Any funds not encumbered for the purposes of this clause
within 30 months of availability shall revert for general use in the
Multifamily Housing Program.
   (B) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Housing Rehabilitation Loan Fund to be expended
for the Multifamily Housing Program authorized by Chapter 6.7
(commencing with Section 50675) of Part 2, to be used for supportive
housing for individuals and households moving from emergency shelters
or transitional housing or those at risk of homelessness. The
Department of Housing and Community Development shall provide for
higher per-unit loan limits as reasonably necessary to achieve
housing costs affordable to those individuals and households. For
purposes of this subparagraph, "supportive housing" means housing
with no limit on length of stay, that is occupied by the target
population, as defined in subdivision (d) of Section 53260, and that
is linked to onsite or offsite services that assist the tenant to
retain the housing, improve his or her health status, maximize his or
her ability to live, and, when possible, work in the community. The
criteria for selecting projects shall give priority to:
   (i) Supportive housing for people with disabilities who would
otherwise be at high risk of homelessness where the applications
represent collaboration with programs that meet the needs of the
person's disabilities.
   (ii) Projects that demonstrate funding commitments from local
governments for operating subsidies or services funding, or both, for
five years or longer.
   (C) One hundred thirty-five million dollars ($135,000,000) shall
be transferred to the fund created by subdivision (b) of Section
50517.5 to be expended for the programs authorized by Chapter 3.2
(commencing with Section 50517.5) of Part 2.
   (D) Three hundred million dollars ($300,000,000) shall be
transferred to the Self-Help Housing Fund created by Section 50697.1.
These funds shall be available to the Department of Housing and
Community Development, to be expended for the purposes of enabling
households to become or remain homeowners pursuant to the CalHome
Program authorized by Chapter 6 (commencing with Section 50650) of
Part 2, except ten million dollars ($10,000,000) shall be expended
for construction management under the California Self-Help Housing
Program pursuant to subdivision (b) of Section 50696.
   (E) Two hundred million dollars ($200,000,000) shall be
transferred to the Self-Help Housing Fund created by Section 50697.1.
These funds shall be available to the California Housing Finance
Agency, to be expended for the purposes of the California Homebuyer's
Downpayment Assistance Program authorized by Chapter 11 (commencing
with Section 51500) of Part 3. Up to one hundred million dollars
($100,000,000) of these funds may be expended pursuant to subdivision
(b) of Section 51504.
   (F) One hundred million dollars ($100,000,000) shall be
transferred to the Affordable Housing Innovation Fund, which is
hereby created in the State Treasury, to be administered by the
Department of Housing and Community Development. Funds shall be
expended for competitive grants or loans to sponsoring entities that
develop, own, lend, or invest in affordable housing and used to
create pilot programs to demonstrate innovative, cost-saving
approaches to creating or preserving affordable housing. Specific
criteria establishing eligibility for and use of the funds shall be
established in statute as approved by a 2/3 vote of each house of the
Legislature. Any funds not encumbered for the purposes set forth in
this subparagraph within 30 months of availability shall revert to
the Self-Help Housing Fund created by Section 50697.1 and shall be
available for the purposes described in subparagraph (D).
   (G) One hundred twenty-five million dollars ($125,000,000) shall
be transferred to the Building Equity and Growth in Neighborhoods
Fund to be used for the Building Equity and Growth in Neighborhoods
(BEGIN) Program pursuant to Chapter 14.5 (commencing with Section
50860) of Part 1. Any funds not encumbered for the purposes set forth
in this subparagraph within 30 months of availability shall revert
for general use in the CalHome Program.
   (H) Fifty million dollars ($50,000,000) shall be transferred to
the Emergency Housing and Assistance Fund to be distributed in the
form of capital development grants under the Emergency Housing and
Assistance Program authorized by Chapter 11.5 (commencing with
Section 50800) of Part 2 of Division 31. The funds shall be
administered by the Department of Housing and Community Development
in a manner consistent with the restrictions and authorizations
contained in Provision 3 of Item 2240-105-0001 of the Budget Act of
2000, except that any appropriations in that item shall not apply.
The competitive system used by the department shall incorporate
priorities set by the designated local boards and their input as to
the relative merits of submitted applications from within the
designated local board's county in relation to those priorities. In
addition, the funding limitations contained in this section shall not
apply to the appropriation in that budget item.
   (2) The Legislature may, from time to time, amend the provisions
of law related to programs to which funds are, or have been,
allocated pursuant to this subdivision for the purpose of improving
the efficiency and effectiveness of the program, or for the purpose
of furthering the goals of the program.
   (3) The Bureau of State Audits shall conduct periodic audits to
ensure that bond proceeds are awarded in a timely fashion and in a
manner consistent with the requirements of this subdivision, and that
awardees of bond proceeds are using funds in compliance with
applicable provisions of this subdivision. The first audit shall be
conducted no later than one year from voter approval of this part.
   (4) In its annual report to the Legislature, the Department of
Housing and Community Development shall report how funds that were
made available pursuant to this subdivision and allocated in the
prior year were expended. The department shall make the report
available to the public on its Internet Web site.
   (b) Eight hundred fifty million dollars ($850,000,000) shall be
deposited in the Regional Planning, Housing, and Infill Incentive
Account, which is hereby created in the fund. Funds in the account
shall be available, upon appropriation by the Legislature, and
subject to such other conditions and criteria as the Legislature may
provide in statute, for the following purposes:
   (1) For infill incentive grants for capital outlay related to
infill housing development and other related infill development,
including, but not limited to, all of the following:
   (A) No more than two hundred million dollars ($200,000,000) for
park creation, development, or rehabilitation to encourage infill
development.
   (B) Water, sewer, or other public infrastructure costs associated
with infill development.
   (C) Transportation improvements related to infill development
projects.
   (D) Traffic mitigation.
   (2) For brownfield cleanup that promotes infill housing
development and other related infill development consistent with
regional and local plans.
   (c) Three hundred million dollars ($300,000,000) to be deposited
in the Transit-Oriented Development Account, which is hereby created
in the fund, for transfer to the Transit-Oriented Development
Implementation Fund, for expenditure, upon appropriation by the
Legislature, pursuant to the Transit-Oriented Development
Implementation Program authorized by Part 13 (commencing with Section
50560).
   (d) Two hundred million dollars ($200,000,000) shall be deposited
in the Housing Urban-Suburban-and-Rural Parks Account, which is
hereby created in the fund. Funds in the account shall be available
upon appropriation by the Legislature for housing-related parks
grants in urban, suburban, and rural areas, subject to the conditions
and criteria that the Legislature may provide in statute.
      CHAPTER 3.  Fiscal Provisions

   53546.  Bonds in the total amount of two billion eight hundred
fifty million dollars ($2,850,000,000), exclusive of refunding bonds,
or so much thereof as is necessary, are hereby authorized to be
issued and sold for carrying out the purposes expressed in this part
and to reimburse the General Obligation Bond Expense Revolving Fund
pursuant to Section 16724.5 of the Government Code. All bonds herein
authorized which have been duly sold and delivered as provided herein
shall constitute valid and legally binding general obligations of
the state, and the full faith and credit of the state is hereby
pledged for the punctual payment of both principal and interest
thereof.
   53547.  The bonds authorized by this part shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law (Chapter 4 (commencing with Section
16720) of Part 3 of Division 4), except subdivision (a) of Section
16727 to the extent that it is inconsistent with this part, and all
of the other provisions of that law as amended from time to time
apply to the bonds and to this part and are hereby incorporated in
this part as though set forth in full in this part.
   53548.  (a) Solely for the purpose of authorizing the issuance and
sale, pursuant to the State General Obligation Bond Law, of the
bonds authorized by this part, the Housing Finance Committee created
pursuant to Section 53524 is continued in existence. For the purposes
of this part, the Housing Finance Committee is "the committee" as
that term is used in the State General Obligation Bond Law.
   (b) The committee may adopt guidelines establishing requirements
for administration of its financing programs to the extent necessary
to protect the validity of, and tax exemption for, interest on the
bonds. The guidelines shall not constitute rules, regulations,
orders, or standards of general application and are not subject to
Chapter 3.5 (commencing with Section 11340) of Division 3 of Title 2
of the Government Code.
   (c) For the purposes of the State General Obligation Bond Law, the
Department of Housing and Community Development is designated the
"board" for programs administered by the department, and the
California Housing Finance Agency is the "board" for programs
administered by the agency.
   53549.  Upon request of the board stating that funds are needed
for purposes of this part, the committee shall determine whether or
not it is necessary or desirable to issue bonds authorized pursuant
to this part in order to carry out the actions specified in Section
53545, and, if so, the amount of bonds to be issued and sold.
Successive issues of bonds may be authorized and sold to carry out
those actions progressively, and are not required to be sold at any
one time. Bonds may bear interest subject to federal income tax.
   53550.  There shall be collected annually, in the same manner and
at the same time as other state revenue is collected, a sum of money
in addition to the ordinary revenues of the state, sufficient to pay
the principal of, and interest on, the bonds as provided herein, and
all officers required by law to perform any duty in regard to the
collections of state revenues shall collect that additional sum.
   53551.  Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this part, an amount that will equal
the total of the following:
   (a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this part, as the
principal and interest become due and payable.
   (b) The sum which is necessary to carry out Section 53553,
appropriated without regard to fiscal years.
   53552.  The board may request the Pooled Money Investment Board to
make a loan from the Pooled Money Investment Account, in accordance
with Section 16312 of the Government Code, for purposes of this part.
The amount of the request shall not exceed the amount of the unsold
bonds which the committee has, by resolution, authorized to be sold
for the purpose of this part, less any amount withdrawn pursuant to
Section 53553. The board shall execute any documents as required by
the Pooled Money Investment Board to obtain and repay the loan. Any
amount loaned shall be deposited in the fund to be allocated in
accordance with this part.
   53553.  For the purpose of carrying out this part, the Director of
Finance may, by executive order, authorize the withdrawal from the
General Fund of any amount or amounts not to exceed the amount of the
unsold bonds which the committee has, by resolution, authorized to
be sold for the purpose of carrying out this part. Any amounts
withdrawn shall be deposited in the fund. Any money made available
under this section shall be returned to the General Fund, plus the
interest that the amounts would have earned in the Pooled Money
Investment Account, from money received from the sale of bonds which
would otherwise be deposited in that fund.
   53554.  The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of the State General Obligation Bond
Law. Approval by the electors of this act shall constitute approval
of any refunding bonds issued pursuant to the State General
Obligation Bond Law.
   53555.  Notwithstanding any provisions in the State General
Obligation Bond Law, the maximum maturity of any bonds authorized by
this part shall not exceed 30 years from the date of each respective
series. The maturity of each series shall be calculated from the date
of each series.
   53556.  The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this part are
not "proceeds of taxes" as that term is used in Article XIII B of the
California Constitution, the disbursement of these proceeds is not
subject to the limitations imposed by that article.
   53557.  Notwithstanding any provision of the State General
Obligation Bond Law with regard to the proceeds from the sale of
bonds authorized by this part that are subject to investment under
Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of
Division 4 of Title 2 of the Government Code, the Treasurer may
maintain a separate account for investment earnings, order the
payment of those earnings to comply with any rebate requirement
applicable under federal law, and may otherwise direct the use and
investment of those proceeds so as to maintain the tax-exempt status
of those bonds and to obtain any other advantage under federal law on
behalf of the funds of this state.
   53558.  All money derived from premium and accrued interest on
bonds sold pursuant to this chapter shall be transferred to the
General Fund as a credit to expenditures for bond interest.
  SEC. 3.  Part 13 (commencing with Section 53560) is added to
Division 31 of the Health and Safety Code, to read:

      PART 13.  TRANSIT-ORIENTED DEVELOPMENT IMPLEMENTATION PROGRAM

   53560.  There is hereby established the Transit-Oriented
Development Implementation Program, to be administered by the
Department of Housing and Community Development, to provide local
assistance to cities, counties, cities and counties, transit
agencies, and developers for the purpose of developing or
facilitating the development of higher density uses within close
proximity to transit stations that will increase public transit
riderships.
   53561.  (a) There is hereby created in the State Treasury the
Transit-Oriented Development Implementation Fund.
   (b) Interest on loans made from the fund shall be deposited in the
fund.
   (c) All interest, dividends, and pecuniary gains from investments
or deposits of moneys in the fund shall accrue to the fund,
notwithstanding Section 16305.7 of the Government Code. There shall
be paid into the fund all of the following:
   (1) Any moneys appropriated and made available by the Legislature
for the purposes of the fund.
   (2) Any moneys that the department receives in repayment of loans
made from the fund, including any interest on loans made from the
fund.
   (3) Any other moneys that may be made available to the department
for the purposes of this part from any other source.
   53562.  (a) To the extent that funds are available, the department
shall make grants to cities, counties, cities and counties, or
transit agencies for the provision of infrastructure necessary for
the development of higher density uses within close proximity to a
transit station, or to facilitate connections between that
development and the station.
   (b) To the extent that funds are available, the department shall
make loans for the development and construction of a housing
development project within close proximity to a transit station. To
be eligible for a loan, at least 15 percent of the units in the
proposed development shall be made available at an affordable rent or
at an affordable housing cost to persons of very low or low income
for at least 55 years. Developments assisted pursuant to this
subdivision shall be on parcels at least a portion of which are
located within one-quarter mile of a transit station. A housing
development project may include a mixed-use development consisting of
residential and nonresidential uses.
   (c) As used in this part, "transit station" shall have the same
meaning as defined in subdivision (b) of Section 65460.1 of the
Government Code.
   53563.  (a) In ranking applications pursuant to this part, the
department shall, among other criteria, consider the extent to which
the project or development will increase public transit ridership and
minimize automobile trips.
   (b) The department shall also grant bonus points to projects or
developments that are in an area designated by the appropriate
council of governments for infill development as part of a regional
plan.
   53564.  (a) The department may use up to 5 percent of the funds
appropriated for the purposes of this part for its costs in
administering the programs authorized by this part.
   (b) The department may administer the programs pursuant to
guidelines that shall not be subject to the requirements of Chapter
3.5 (commencing with Section 11340) of Division 3 of Title 2 of the
Government Code.
  SEC. 4.  Section 2 of this act shall become operative upon the
adoption by the voters of the Housing and Emergency Shelter Trust
Fund Act of 2006.
  SEC. 5.  Notwithstanding Sections 13115 and 13117 of the Elections
Code, the following measures shall be placed on the ballot for the
November 7, 2006, statewide general election in the following order:

   (a) Senate Constitutional Amendment No. 7 of the 2005-06 Regular
Session shall be placed first on the ballot and shall be designated
as Proposition 1A.
   (b) The Highway Safety, Traffic Reduction, Air Quality and Port
Security Act of 2006 shall be placed second on the ballot and shall
be designated as Proposition 1B.
   (c) The Housing and Emergency Shelter Trust Fund Act of 2006 shall
be placed third on the ballot and shall be designated as Proposition
1C.
   (d) The Kindergarten-University Public Education Facilities Bond
Act of 2006 shall be placed fourth on the ballot and shall be
designated as Proposition 1D.
   (e) The Disaster Preparedness and Flood Prevention Bond Act of
2006 shall be placed fifth on the ballot and shall be designated as
Proposition 1E.
  SEC. 6.  (a) Notwithstanding any other provision of law, all
ballots of the November 7, 2006, statewide general election shall
have printed thereon and in a square thereof, exclusively, the words:
"Housing and Emergency Shelter Trust Fund Act of 2006" and in the
same square under those words, the following in 8-point type: "For
the purpose of providing shelters for battered women and their
children, clean and safe housing for low-income senior citizens;
homeownership assistance for the disabled, military veterans, and
working families; and repairs and accessibility improvements to
apartment for families and disabled citizens, the state shall issue
bonds totaling two billion eight hundred fifty thousand dollars
($2,850,000,000) paid from existing state funds at an average annual
cost of ______ dollars ($_____) per year over the _____ year life of
the bonds. Requires reporting and publication of annual independent
audited reports showing use of funds, and limits administration and
overhead costs. (The Attorney General shall fill in the blanks in
this subdivision with the figures provided by the Legislative Analyst
for the annual average cost of the bonds and the number of years
required to retire the bonds.)"
   Opposite the square, there shall be left spaces in which the
voters may place a cross in the manner required by law to indicate
whether they vote for or against the act.
   (b) Notwithstanding Sections 13247 and 13281 of the Elections
Code, the language in subdivision (a) shall be the only language
included in the ballot label for the condensed statement of the
ballot title, and the Attorney General shall not supplement, subtract
from, or revise that language, except that the Attorney General may
include the financial impact summary prepared pursuant to Section
9087 of the Elections Code and Section 88003 of the Government Code.
The ballot label is the condensed statement of the ballot title and
the financial impact summary.
   (c) Where the voting in the election is done by means of voting
machines used pursuant to law in the manner that carries out the
intent of this section, the use of the voting machines and the
expression of the voters' choice by means thereof are in compliance
with this section.
  SEC. 7.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to provide for the submission of Section 2 of this act to
the voters at the November 7, 2006, statewide general election, and
to implement other housing and related programs in a timely manner,
it is necessary that this act take effect immediately.