Resolution Supporting State of California Senate Bill 391, the California Homes and Jobs Act of 2013.
Meeting Date APRIL 02, 2013
Agenda Item #7. Resolution Supporting State of California Senate Bill 391, the California Homes and Jobs Act of 2013.
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AGENDA ITEM: Resolution Supporting State of California Senate Bill 391, the California Homes and Jobs Act of 2013.
MEETING DATE: April 2, 2013
PREPARED BY: Jose Antonio Ramirez, City Manager
REVIEWED BY: Jose Antonio Ramirez, City Manager
Adopt Resolution No. 2013-_, supporting SB 391 (DeSaulnier) the California Homes and Jobs Act of 2013: to spur job creation, boost California’s Business Competitiveness, and provide an additional source for the production of affordable housing in California.
With the dissolution of redevelopment agencies and the expiration of various affordable housing bond measures, there is currently very little local, state, and federal funding available for the construction and maintenance of affordable housing. The California Homes and Jobs Act of 2013, which was introduced in the State Senate on February 20, 2013, would provide a dedicated source of funding for cities, counties, developers, and nonprofits to meet the housing needs in their local communities.
Everyone in California needs a safe and affordable place to call home. Rents and mortgages within the reach of working families are critical to maintaining California’s business competitiveness.
This money can be used for a variety of housing programs including the construction of new rental and home-ownership housing, maintenance and preservation of affordable housing stock affordable to low and moderate-income households, and the creation of homebuyer assistance programs such as down payment assistance and housing counseling.
The California Homes and Jobs Act of 2013 (SB 391) will:
■ Create 29,000 jobs annually, primarily in the beleaguered construction sector.
■ Generate an estimated $500 million annually in state investment and leverage an additional $2.78 billion in federal, local, and private investment.
■ Deploy these dollars throughout California using a successful private/public partnership model, creating jobs and generating revenue for local governments.
■ Build safe and affordable apartments and single-family homes for Californians in need, including families, seniors, veterans, people with disabilities, and people experiencing homelessness.
■ These funds are derived from a $75 document recording fee attached to real estate instruments, papers, or notices that are required or permitted (home sales are exempt).
■ The bill would require that revenues from this fee be sent quarterly to the Department of Housing and Community Development (HCD) for deposit in the California Homes and Jobs Trust Fund for purposes of supporting affordable programs.
If the bill is passed, the City of Livingston and private developers, who work in the area, would be able to have greater access to affordable housing funds.
1. Resolution No. 2013-
2. Exhibit A – Proposed State of California SB 391 – California Homes and Jobs Act of 2013.
RESOLUTION NO. 2013-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON SUPPORTING SB 391 (DESAULNIER) THE CALIFORNIA HOMES AND JOBS ACT OF 2013: SPUR JOB CREATION, BOOST CALIFORNIA’S BUSINESS COMPETITIVENESS, AND BUILD AFFORDABLE HOMES FOR CALIFORNIA
WHEREAS, Livingston area families continue to face a housing crisis as mortgages remain out of reach, credit standards have tightened, and the foreclosure crisis has pushed more people into a rental market already suffering from decades of short supply, leading to record-setting increases; and
WHEREAS, the most vulnerable in our City, who struggled to make rent before the foreclosure crisis, face even more uncertainty in today’s rental market. They risk joining the more than 130,000 Californians who are homeless on any given night; and
WHEREAS, California needs to get building again to create jobs and build homes for those in need, including families with children, seniors, veterans, and people with disabilities; and
WHEREAS, unlike other areas of the economy, the construction sector remains stagnant with breadwinners still out of work; and
WHEREAS, with funds from successful state housing bonds (Props. 46 and 1 c) exhausted and the complete elimination of redevelopment, the availability of state dollars that leverage federal and local funds and private investment is the lowest it has been in years, threatening housing production and the jobs that go with it; and
WHEREAS, Senate Bill 391 (DeSaulnier), the California Homes and Jobs Act of 2013, will get California building again by imposing a $75 recordation fee on real estate documents, excluding documents related to home sales, creating a stable funding source for investment in homes and jobs; and
WHEREAS, SB 391 would generate an estimated $500 million in state investment annually and leverage an additional $2.78 billion in federal and local funding and bank loans and deploy these funds through a successful public/private partnership model; and
WHEREAS, SB 391 would create 29,000 jobs in California annually, and help businesses stay competitive when they can attract and retain the talent that fuels California’s economy; and
WHEREAS, if the State fails to act now, too many Californians will be left without an affordable place to call home and businesses will be challenged to remain competitive.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Livingston hereby SUPPORTS Senate Bill 391 (DeSaulnier), to build homes within reach of City residents and create jobs by creating a stable source of revenue for investment in affordable homes.
Passed and adopted this 2d day of April, 2013, by the following vote:
Rodrigo Espinoza, Mayor
of the City of Livingston
1, hereby certify that the foregoing resolution was regularly introduced, passed and adopted at a regular meeting of the City Council of the City of Livingston this 2nd day of April, 2013.
Antonio Silva, City Clerk
of the City of Livingston
CALIFORNIA LEGISLATURE- 2013-2014 REGULAR SESSION
SENATE BILL No. 391
Introduced by Senator DeSaulnier
(Principal Coauthor(s): Assembly Member Atkins, Bocanegra) (Coauthor(s): Senator Correa, Hill, Lena, Lieu, Pavley)
(Coauthor(s): Assembly Member Ammiano, Bloom, Bonilla, Gordon, Mullin, Quirk-Silva, Torres)
February 20, 2013
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.
LEGISLATIVE COUNSEL’S DIGEST
SB 391, as introduced, DeSaulnier. California Homes and Jobs Act of 2013.
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 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 California Homes and Jobs Act of 2013. 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. 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 be sent quarterly to the Department of Housing and Community Development for deposit in the California Homes and Jobs Trust Fund, which the bill would create within the State Treasury. The bill would provide that moneys in the fund may be expended for supporting affordable housing, administering housing programs, and the cost of periodic audits, as specified. The bill would impose certain auditing and reporting requirements.
This bill would result in a change in state taxes for the purpose of increasing state revenues within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.
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.
Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: YES
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
This act shall be known as the California Homes and Jobs Act of 2013.
The Legislature finds and declares that having a healthy housing market that provides an adequate supply of homes affordable to Californians at all income levels is critical to the economic prosperity and quality of life in the state. The Legislature further finds and declares all of the following:
(a) Funding approved by the state’s voters in 2002 and 2006, as of June 2011, has financed the construction, rehabilitation, and preservation of over 11,600 shelter spaces and 57,220 affordable apartments, including 2,500 supportive homes for people experiencing homelessness. In addition, these funds have helped 57,290 families become or remain homeowners. Nearly all of the voter-approved funding for affordable housing was awarded by the beginning of 2012.
(b) The requirement in the Community Redevelopment Law that redevelopment agencies set aside 20 percent of tax increment for affordable housing generated roughly one billion dollars ($1,000,000,000) per year. With the elimination of redevelopment agencies, this funding stream has disappeared.
(c) California has 12 percent of the United States population but 21.4 percent of its homeless population. Seventy-three percent of people experiencing homelessness in California fell into it because they could not afford a place to live. Sixty-two percent of homeless Californians are unsheltered, 14 percent are veterans, and 20 percent are families.
(d) Furthermore, 4 of the top 10 metropolitan areas in the country for homeless are in the following metropolitan areas in California: San Jose-Sunnyvale-Santa Clara, Los Angeles-Long Beach-Santa Ana, Fresno, and Stockton.
(e) California continues to have the second lowest homeownership rate in the nation, and minimum wage earners have to work 120 hours per week to afford the average two-bedroom apartment.
(f) Millions of Californians are affected by the state’s chronic housing shortage, including seniors, veterans, people experiencing chronic homelessness, working families, people with mental, physical, or developmental disabilities, agricultural workers, people exiting jails, prisons, and other state institutions, survivors of domestic violence, and former foster and transition-aged youth.
(g) While the current credit and foreclosure crisis has resulted in reductions in home prices in some areas, it has increased pressure on the rental housing market and slowed new housing production of all types, exacerbating the mismatch between the ever increasing number of households that need housing they can afford and the supply.
(h) California’s workforce continues to experience longer commute times as persons in the workforce seek affordable housing outside the areas in which they work. If California is unable to support the construction of affordable housing in these areas, congestion problems will strain the state’s transportation system and exacerbate greenhouse gas emissions.
(i) Many economists agree that the state’s higher than average unemployment rate is due in large part to massive shrinkage in the construction industry from 2005 to 2009, including losses of nearly 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.
(j) The lack of sufficient housing impedes economic growth and development by making it difficult for California employers to attract and retain employees.
(k) 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.
(1) 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.
(m) In order to promote housing and homeownership opportunities, the recording fee imposed by this act should not be applied to any recordings made in connection with a sale of real property. Purchasing housing is likely the largest purchase made by Californians, and it is the intent of this act not to increase transaction costs associated with these transfers.
Section 27388.1 is added to the Government Code, to read:
(a) (1) 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. “Real estate instrument” includes, but is not limited to, the following documents: deed, grant deed, trustee’s deed, deed of trust, reconveyance, quit claim deed, fictitious deed of trust, assignment of deed of trust, request for notice of default, abstract of judgment, subordination agreement, declaration of homestead, abandonment of homestead, notice of default, release or discharge, easement, notice of trustee sale, notice of completion, UCC financing statement, mechanic’s lien, maps, and covenants, conditions, and restrictions.
(2) The fee described in paragraph (1) shall not be imposed on any real estate instrument, paper, or notice recorded in connection with a transfer subject to the imposition of a documentary transfer tax as defined in Section 11911 of the Revenue and Taxation Code.
(b) The fees, after deduction of any actual and necessary administrative costs incurred by the county recorder in carrying out this section, shall be sent quarterly to the Department of Housing and Community Development for deposit in the California Homes and Jobs Trust Fund established by Section 50471 of the Health and Safety Code, to be expended for the purposes set forth in that section. In addition, the county shall pay to the Department of Housing and Community Development interest, at the legal rate, on any funds not paid to the Controller within 30 days of the end of a quarter.
Chapter 2.5 (commencing with Section 50470) is added to Part 2 of Division 31 of the Health and Safety Code, to read:
CHAPTER 2.5. California Homes and Jobs Trust Fund
Article 1. General Provisions
This chapter shall be known, and may be cited, as the California Homes and Jobs Act of 2013.
(a) There is hereby created in the State Treasury the California Homes and Jobs Trust Fund. All interest or other increments resulting from the investment of moneys in the fund shall be deposited in the fund, notwithstanding Section 16305.7 of the Government Code. Moneys in the California Homes and Jobs Trust Fund shall not be subject to transfer to any other fund pursuant to any provision of Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code, except to the Surplus Money Investment Fund. Upon appropriation by the Legislature, moneys in the fund may be expended for the following purposes:
(1) Supporting the development, acquisition, rehabilitation, and preservation of housing affordable to low- and moderate-income households, including, but not limited to, emergency shelters; transitional and permanent rental housing, including necessary service and operating subsidies; foreclosure mitigation; and homeownership opportunities.
(2) Administering housing programs that receive an appropriation from the fund. Moneys expended for this purpose shall not exceed 5 percent of the moneys in the fund.
(3) The cost of periodic audits required by Section 50475.
(b) Both of the following shall be paid and deposited in the fund:
(1) Any moneys appropriated and made available by the Legislature for purposes of the fund.
(2) Any other moneys that may be made available to the department for the purposes of the fund from any other source or sources.
Article 2. Audits and Reporting
The Bureau of State Audits 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.
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. The department shall make the report available to the public on its Internet Web site.
No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.