HomeMy WebLinkAboutCM Affordable Housing____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: 6/18/2018
Disposition: Continued
Agenda Item No: 7.c
Meeting Date: June 18, 2018
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: City Manager’s Office
Prepared by: Andrew Hening,
Director of Homeless
Planning & Outreach
City Manager Approval: ______________
TOPIC: AFFORDABLE HOUSING
SUBJECT: RESOLUTION SUPPORTING THE $4 BILLION VETERANS AND AFFORABLE HOUSING BOND ACT
ON THE NOVEMBER 6, 2018 STATE BALLOT
RECOMMENDATION: Adopt a resolution supporting the $4 billion Veterans and Affordable Housing Bond Act
on the November 6, 2018 state ballot.
BACKGROUND: The League of California Cities has asked the City of San Rafael to pass a resolution supporting
the $4 billion Veterans and Affordable Housing Bond Act (Attachment 1) on the November 6, 2018 state ballot.
Housing unaffordability is reaching crisis levels throughout the state of California. The Department of Housing &
Urban Department defines housing affordability as "housing for which the occupant(s) is/are paying no more
than 30 percent of his or her income for gross housing costs." 30% of renters in California are now spending
more than 50% of their income on rent. According to data from the Marin Independent Journal, the median
one-bedroom apartment in San Rafael now costs $2,580. A minimum wage worker in San Rafael making
$11/hour would have to work 180 hours to afford the median one-bedroom apartment (there are only 168
hours in the week). Across the state, homeownership rates are at their lowest point since the 1940s.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
California’s booming job growth has not been met with a parallel boom in housing. In the Bay Area alone, in
recent years there has been a 10:1 mismatch between job growth and housing creation. These increases have
had a direct correlation with the increasing rates of homelessness we see in our community. According to the
Department of Housing & Urban Development’s 2017 Annual Report to Congress. California’s homeless
population jumped nearly 14 percent from 2016 to 2017 — to a total of more than 134,000 people. It rose
nearly 9 percent over the previous seven years. That’s much different than the national picture. While the
national homeless population ticked up about 1 percent in 2017, it remained 13 percent lower than in 2010. At
least 10 California city and county governments have declared states of emergency since 2015.
ANALYSIS: In response to this crisis, in the fall of 2017 the California State Legislature and Governor Brown
passed a series of new bills, including new measures to increase financial support for housing creation. Senate
Bill 3 – the Veterans and Affordable Housing Bond Act – was one of the approved bills, and it has put a $4 billion
bond on the November 6, 2018 ballot.
The need for more financial assistance to local communities is critical. In nearby Fairfax, CA, the cost of the
Victory Village 50-unit, senior affordable housing project recently crossed the $30 million mark, meaning it can
now cost more than $600,000 to develop just one affordable unit in Marin. Local resources alone are
insufficient.
This bond measure has been endorsed by a variety of organizations:
Statewide Organizations: ACCE, Tenants Together, PICO CA, Housing CA, AFSCME local 3299, Gamaliel
CA, California Calls, California Reinvestment Coalition, Move the Immigrant Vote, APEN, Courage
Campaign, Policy Link, Public Advocates, SEIU Locals 2015 & USWW, Western Center on Law & Poverty
Local & Regional Organizations: ACTLA, Alameda Renters Coalition, Bend the Arc, California Rural
Housing, CAUSE, CCED, Clinica Romero, Community Action Network, Causa Justa / Just Cause, CHIRLA,
Community Legal Services of East Palo Alto, Council of Community Housing Organizations , Crenshaw
Subway Coalition, DSA – Sacramento, East Bay Housing Organization (EBHO), East Bay Area Progressive
Democrats, Employee Rights Center (San Diego), Eviction Defense Center, Faith in Action Bay Area, Faith
in the Valley, Fannie Lou Hammer Institute, Glendale Tenants Union, Housing Advocates, Housing Long
Beach, Housing Rights Committee San Francisco, Inland Empire Our Revolution, Inner City Law Center,
Institute for the Black World 21st Century, KIWA, LA CAN, LA Forward, LA Human Right to Housing
Collective, Los Angeles Tenants Union (LATU), LA VOICE (PICO), Leadership Counsel for Justice and
Accountability (Central Valley), LiBRE, MEDA (Mission Economic Development Corporation), MIV, North
Bay Organizing Project, Pasadena Tenants Union, POWER, Public Interest Law Project, SEIU Locals 1021
and 221, Strategic Actions for a Just Economy, Sacramento Housing Alliance, San Francisco Tenants
Union, San Diego Organizing Project, UFCW Local 135, Union de Vecinos, Uplift Inglewood, Urban
Habitat, and UTLA (United Teachers of Los Angeles) and UTSD.
The Marin County Council of Mayors & Councilmembers’ Legislative Committee has not yet taken a position on
this measure.
FISCAL IMPACT: There is no fiscal impact associated with this item.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
OPTIONS: The City Council has the following options to consider on this matter:
1) Adopt the resolution.
2) Request changes to the resolution.
3) Reject the Resolution.
RECOMMENDED ACTION: Adopt the resolution.
ATTACHMENT:
1. SB3 Bill Text
2. Resolution
Senate Bill No. 3
CHAPTER 365
An act to add Part 16 (commencing with Section 54000) to Division 31
of the Health and Safety Code, and to add Article 5z (commencing with
Section 998.600) to Chapter 6 of Division 4 of the Military and Veterans
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.
[Approved by Governor September 29, 2017. Filed with
Secretary of State September 29, 2017.]
legislative counsel’s digest
SB 3, Beall. Veterans and 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. Existing law, the Veterans’ Bond
Act of 2008, authorized, for purposes of financing a specified program for
farm, home, and mobilehome purchase assistance for veterans, the issuance,
pursuant to the State General Obligation Bond Law, of bonds in the amount
of $900,000,000.
This bill would enact the Veterans and Affordable Housing Bond Act of
2018, which, if adopted, would authorize the issuance of bonds in the amount
of $4,000,000,000 pursuant to the State General Obligation Bond Law. Of
the proceeds from the sale of these bonds, $3,000,000,000 would be used
to finance various existing housing programs, as well as infill infrastructure
financing and affordable housing matching grant programs, as provided,
and $1,000,000,000 would be used to provide additional funding for the
above-described program for farm, home, and mobilehome purchase
assistance for veterans, as provided.
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.
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The people of the State of California do enact as follows:
SECTION 1. This act shall be known, and may be cited, as the Veterans
and Affordable Housing Bond Act of 2018.
SEC. 2. The Legislature finds and declares all of the following:
(a) California is experiencing an extreme housing shortage with 2.2
million extremely low income and very low income renter households
competing for only 664,000 affordable rental homes. This leaves more than
1.54 million of California’s lowest income households without access to
affordable housing.
(b) While homelessness across the United States is in an overall decline,
homelessness in California is rising. In 2015, California had 115,738
homeless people, which accounted for 21 percent of the nation’s homeless
population. This is an increase of 1.6 percent from the prior year. California
also had the highest rate of unsheltered people, at 64 percent or 73,699
people; the largest numbers of unaccompanied homeless children and youth,
at 10,416 people or 28 percent of the national total; the largest number of
veterans experiencing homelessness, at 11,311 or 24 percent of the national
homeless veteran population; and the second largest number of people in
families with chronic patterns of homelessness, at 22,582 or 11 percent of
the state’s homeless family population.
(c) It is essential to continue funding, which is soon to expire, for housing
programs that are necessary to address the housing needs of the large number
of veterans and their families living in California.
(d) California is home to 21 of the 30 most expensive rental housing
markets in the country, which has had a disproportionate impact on the
middle class and the working poor. California requires the third highest
wage in the country to afford housing, behind Hawaii and Washington, D.C.
The fair market rent, which indicates the amount of money that a given
property would require if it were open for leasing, for a two-bedroom
apartment is $1,386. To afford this level of rent and utilities, without paying
more than 30 percent of income on housing, a household must earn an hourly
“housing wage” of $26.65 per hour. This means that a person earning
minimum wage must work an average of three jobs to pay the rent for a
two-bedroom unit. In some areas of the state, these numbers are even higher.
(e) Low-income families are forced to spend more and more of their
income on rent, which leaves little else for other basic necessities. Many
renters must postpone or forgo home ownership, live in more crowded
housing, commute further to work, or, in some cases, choose to live and
work elsewhere.
(f) California has seen a significant reduction of state funding in recent
years. The funds from Proposition 46 of 2002 and Proposition 1C of 2006,
totaling nearly $5 billion for a variety of affordable housing programs, have
been expended. Combined with the loss of redevelopment funds, $1.5 billion
of annual state investment dedicated to housing has been lost, leaving several
critical housing programs unfunded.
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(g) High housing costs and the shortage of housing stock in California
directly affect the future health of California’s economy and, given the
staggering numbers indicated above, bold action is necessary. Investment
in existing and successful housing programs to expand the state’s housing
stock should benefit California’s homeless and low-income earners, as well
as some of the state’s most vulnerable populations, including foster and
at-risk youth, persons with developmental and physical disabilities,
farmworkers, the elderly, single parents with children, and survivors of
domestic violence. Investments should also be made in housing for Medi-Cal
recipients served through a county’s Section 1115 Waiver Whole Person
Care Pilot program and family day care providers.
(h) Investment in housing creates jobs and provides local benefits. The
estimated one-year impacts of building 100 rental apartments in a typical
local area include $11.7 million in local income, $2.2 million in taxes and
other revenue for local governments, and 161 local jobs or 1.62 jobs per
apartment. The additional annually recurring impacts of building 100 rental
apartments in a typical local area include $2.6 million in local income,
$503,000 in taxes and other revenue for local governments, and 44 local
jobs or .44 jobs per apartment.
(i) California has 109 federally recognized tribes and 723,000 residents
with Native American ancestry, the largest number of tribes and residents
in the United States. Due to historic dislocation and lack of housing choices,
most do not live on tribal lands and those who do live in severely
substandard, overcrowded homes lacking quality water and sewer services
at rates greater than the general population.
SEC. 3. Part 16 (commencing with Section 54000) is added to Division
31 of the Health and Safety Code, to read:
PART 16. VETERANS AND AFFORDABLE HOUSING BOND ACT
OF 2018
Chapter 1. General Provisions
54000. Together with Article 5z (commencing with Section 998.600)
of Chapter 6 of Division 4 of the Military and Veterans Code, this part shall
be known, and may be cited, as the Veterans and Affordable Housing Bond
Act of 2018.
54002. 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 Sections 53548
and 54014.
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(c) “Fund” means the Affordable Housing Bond Act Trust Fund of 2018
created pursuant to Section 54006.
54004. This part shall only become operative upon adoption by the
voters at the November 6, 2018, statewide general election.
Chapter 2. Affordable Housing Bond Act Trust Fund of 2018 and
Program
54006. The Affordable Housing Bond Act Trust Fund of 2018 is hereby
created within the State Treasury. It is the intent of the Legislature that the
proceeds of bonds (exclusive of refunding bonds issued pursuant to Section
54026) be deposited in the fund and used to fund the housing-related
programs described in this chapter. 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) One billion five hundred million dollars ($1,500,000,000) to be
deposited in the Housing Rehabilitation Loan Fund established pursuant to
Section 50661. The moneys in the fund shall be used for the Multifamily
Housing Program authorized by Chapter 6.7 (commencing with Section
50675) of Part 2, to be expended to assist in the new construction,
rehabilitation, and preservation of permanent and transitional rental housing
for persons with incomes of up to 60 percent of the area median income
(AMI). These funds may also be used to provide technical assistance
pursuant to Section 54007.
(b) One hundred fifty million dollars ($150,000,000) to be deposited into
the Transit-Oriented Development Implementation Fund, established
pursuant to Section 53561, for expenditure, upon appropriation by the
Legislature, pursuant to the Transit-Oriented Development Implementation
Program authorized by Part 13 (commencing with Section 53560) 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 ridership. These funds may also be expended for any authorized
purpose of this program and for state incentive programs, including loans
and grants, within the department. Any funds not encumbered for the
purposes of this subdivision by November 6, 2028, shall revert for general
use in the Multifamily Housing Program authorized by Chapter 6.7
(commencing with Section 50675) of Part 2, unless the Department of
Housing and Community Development determines that funds should revert
sooner due to diminished demand.
(c) Three hundred million dollars ($300,000,000) to be deposited in the
Regional Planning, Housing, and Infill Incentive Account, which is hereby
created within the fund. Moneys in the account shall be available, upon
appropriation by the Legislature, pursuant to the Infill Incentive Grant
Program of 2007 established by Section 53545.13 for infill incentive grants
to assist in the new construction and rehabilitation of infrastructure that
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supports high-density affordable and mixed-income housing in locations
designated as infill, including, but not limited to, any of the following:
(1) Park creation, development, or rehabilitation to encourage infill
development.
(2) Water, sewer, or other public infrastructure costs associated with
infill development.
(3) Transportation improvements related to infill development projects.
(4) Traffic mitigation.
These funds may also be expended for any authorized purpose of this
program. Any funds not encumbered for the purposes of this subdivision
by November 6, 2028, shall revert for general use in the Multifamily Housing
Program authorized by Chapter 6.7 (commencing with Section 50675) of
Part 2, unless the Department of Housing and Community Development
determines that funds should revert sooner due to diminished demand.
(d) One hundred fifty million dollars ($150,000,000) to be transferred
to the Self-Help Housing Fund established pursuant to Section 50697.1.
Notwithstanding Section 13340 of the Government Code and Section
50697.1, these funds are hereby continuously appropriated to the Department
of Housing and Community Development without regard to fiscal years,
which funds shall be transferred by the department to the California Housing
Finance Agency for purposes of the home purchase assistance program
established pursuant to Chapter 6.8 (commencing with Section 51341) of
Part 3.
(e) Three hundred million dollars ($300,000,000) to be deposited in the
Joe Serna, Jr. Farmworker Housing Grant Fund, established pursuant to
Section 50517.5, to fund grants or loans, or both, for local public entities,
nonprofit corporations, limited liability companies, and limited partnerships,
for the construction or rehabilitation of housing for agricultural employees
and their families or for the acquisition of manufactured housing as part of
a program to address and remedy the impacts of current and potential
displacement of farmworker families from existing labor camps, mobilehome
parks, or other housing. These funds may also be expended for any
authorized purpose of this program. These funds may also be used to provide
technical assistance pursuant to Section 54007. Any funds not encumbered
for the purposes of this subdivision by November 6, 2028, shall revert for
general use in the Multifamily Housing Program authorized by Chapter 6.7
(commencing with Section 50675) of Part 2, unless the Department of
Housing and Community Development determines that funds should revert
sooner due to diminished demand.
(f) Three hundred million dollars ($300,000,000) to be deposited in the
Affordable Housing Innovation Fund established pursuant to subparagraph
(F) of paragraph (1) of subdivision (a) of Section 53545. Moneys in the
fund shall be available, upon appropriation by the Legislature, pursuant to
the Local Housing Trust Fund Matching Grant Program established by
Section 50842.2 to fund competitive grants or loans to local housing trust
funds that develop, own, lend, or invest in affordable housing and used to
create pilot programs to demonstrate innovative, cost-saving approaches to
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creating or preserving affordable housing. Local housing trust funds shall
be derived on an ongoing basis from private contribution or governmental
sources that are not otherwise restricted in use for housing programs. These
funds may also be expended for any authorized purpose of this program.
Any funds not encumbered for the purposes of this subdivision by November
6, 2028, shall revert for general use in the Multifamily Housing Program
authorized by Chapter 6.7 (commencing with Section 50675) of Part 2,
unless the Department of Housing and Community Development determines
that funds should revert sooner due to diminished demand.
(g) Three hundred million dollars ($300,000,000) to be deposited in the
Self-Help Housing Fund established pursuant to Section 50697.1. The
moneys in the fund shall be available for the CalHome Program authorized
by Chapter 6 (commencing with Section 50650) of Part 2, to provide direct,
forgivable loans to assist development projects involving multiple home
ownership units, including single-family subdivisions, for self-help mortgage
assistance programs, and for manufactured homes. These funds may also
be expended for any authorized purpose of this program. At least thirty
million dollars ($30,000,000) of the amount deposited in the Self-Help
Housing Fund shall be used to provide grants or forgivable loans to assist
in the rehabilitation or replacement, or both, of existing mobilehomes located
in a mobilehome or manufactured home community. These funds may also
be used to provide technical assistance pursuant to Section 54007. Any
funds not encumbered for the purposes of this subdivision by November 6,
2028, shall revert for general use in the Multifamily Housing Program
authorized by Chapter 6.7 (commencing with Section 50675) of Part 2,
unless the Department of Housing and Community Development determines
that funds should revert sooner due to diminished demand.
54007. (a) (1) Notwithstanding any other provision of this part, the
Department of Housing and Community Development may provide technical
assistance to eligible counties and eligible cities, or developers of affordable
housing within eligible counties and eligible cities, to facilitate the
construction of housing for the target populations for the following programs
funded pursuant to this part:
(A) The Multifamily Housing Program (Chapter 6.7 (commencing with
Section 50675) of Part 2).
(B) The Joe Serna, Jr. Farmworker Housing Grant Program (Chapter 3.2
(commencing with Section 50515.2) of Part 2).
(C) The CalHome Program (Chapter 6 (commencing with Section 50650)
of Part 2).
(2) Technical assistance pursuant to this section shall be provided using
the bond proceeds allocated pursuant to Section 54006 to the program for
which the technical assistance is provided.
(3) The Department of Housing and Community Development shall not
provide more than three hundred sixty thousand dollars ($360,000) total in
technical assistance pursuant to this section, and an eligible county or eligible
city shall not receive more than thirty thousand dollars ($30,000) in technical
assistance annually.
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(b) For purposes of this section, the following definitions shall apply:
(1) “Eligible city” means a city that is located within a county with a
population of 150,000 residents or fewer.
(2) “Eligible county” means a county with a population of 150,000
residents or fewer.
(3) “Technical assistance” includes engineering assistance and
environmental review related to an affordable housing project and
reimbursement of administrative costs related to developing a grant proposal.
54008. (a) The Legislature may, from time to time, amend any law
related to programs to which funds are, or have been, allocated pursuant to
this chapter for the purposes of improving the efficiency and effectiveness
of those programs or to further the goals of those programs.
(b) The Legislature may amend this chapter to reallocate the proceeds
of bonds issued and sold pursuant to this part among the programs to which
funds are to be allocated pursuant to this chapter as necessary to effectively
promote the development of affordable housing in this state.
54009. Programs funded with bond proceeds shall, when allocating
financial support, give preference to projects that are “public works” for
purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division
2 of the Labor Code and other projects on which all construction workers
will be paid at least the general prevailing rate of per diem wages as
determined by the Director of Industrial Relations.
Chapter 3. Fiscal Provisions
54010. Bonds in the total amount of three billion dollars
($3,000,000,000), exclusive of refunding bonds issued pursuant to Section
54026, or so much thereof as is necessary as determined by the committee,
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 issued, sold, and delivered
as provided herein shall constitute valid and 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 of and interest on those bonds when
due.
54012. 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 of Title 2 of the Government Code), except subdivisions (a) and
(b) of Section 16727 of the Government Code, and all of the provisions of
that law as amended from time to time apply to the bonds and to this part,
except as provided in Section 54028, and are hereby incorporated in this
part as though set forth in full in this part.
54014. (a) Solely for the purpose of authorizing the issuance and sale,
pursuant to the State General Obligation Bond Law, of the bonds authorized
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by this part, the committee 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 Department of Housing and Community Development may adopt
guidelines establishing requirements for administration of its financing
programs. 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 Part 1 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.
54016. 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, 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.
54018. 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 each year. It is the duty of all officers charged by law
with any duty in regard to the collections of state revenues to do or perform
each and every act which is necessary to collect that additional sum.
54020. 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 both 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 54024, appropriated
without regard to fiscal years.
54022. 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 that
the committee has, by resolution, authorized to be sold, excluding any
refunding bonds authorized pursuant to Section 54026, for purposes of this
part, less any amount loaned pursuant to this section and not yet repaid and
any amount withdrawn from the General Fund pursuant to Section 54024
and not yet returned to the General Fund. 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.
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54024. For purposes 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
that the committee has, by resolution, authorized to be sold, excluding any
refunding bonds authorized pursuant to Section 54026, for purposes of this
part, less any amount loaned pursuant to Section 54022 and not yet repaid
and any amount withdrawn from the General Fund pursuant to this section
and not yet returned to the General Fund. Any amounts withdrawn shall be
deposited in the fund to be allocated in accordance with this part. Any
moneys 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 moneys received from the sale of bonds
which would otherwise be deposited in that fund.
54026. The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of Chapter 4 of Part 3 of Division 4 of
Title 2 of the Government Code. Approval by the electors of this act shall
constitute approval of any refunding bonds issued to refund bonds issued
pursuant to this part, including any prior issued refunding bonds. Any bond
refunded with the proceeds of a refunding bond as authorized by this section
may be legally defeased to the extent permitted by law in the manner and
to the extent set forth in the resolution, as amended from time to time,
authorizing that refunded bond.
54028. Notwithstanding any provisions in the State General Obligation
Bond Law, the maturity date of any bonds authorized by this part shall not
be later than 35 years from the date of each such bond. The maturity of each
series shall be calculated from the date of issuance of each bond.
54030. 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.
54032. 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, may 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 tax-exempt bonds and to obtain any other advantage
under federal law on behalf of the funds of this state.
54034. All moneys derived from premiums and accrued interest on
bonds sold pursuant to this part shall be transferred to the General Fund as
a credit to expenditures for bond interest; provided, however, that amounts
derived from premiums may be reserved and used to pay the costs of bond
issuance prior to transfer to the General Fund.
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SEC. 4. Article 5z (commencing with Section 998.600) is added to
Chapter 6 of Division 4 of the Military and Veterans Code, to read:
Article 5z. The Veterans and Affordable Housing Bond Act of 2018
998.600. Together with Part 16 (commencing with Section 54000) of
Division 31 of the Health and Safety Code, this article shall be known and
may be cited as the Veterans and Affordable Housing Bond Act of 2018.
998.601. (a) The State General Obligation Bond Law (Chapter 4
(commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the
Government Code), as amended from time to time, except as otherwise
provided herein, is adopted for the purpose of the issuance, sale, and
repayment of, and otherwise providing with respect to, the bonds authorized
to be issued by this article, and the provisions of that law are included in
this article as though set out in full in this article. All references in this article
to “herein” refer both to this article and that law.
(b) For purposes of the State General Obligation Bond Law, the
Department of Veterans Affairs is designated the board.
998.602. As used herein, the following terms have the following
meanings:
(a) “Board” means the Department of Veterans Affairs.
(b) “Bond” means a veterans’ bond, a state general obligation bond,
issued pursuant to this article adopting the provisions of the State General
Obligation Bond Law.
(c) “Bond act” means this article authorizing the issuance of state general
obligation bonds and adopting the State General Obligation Bond Law by
reference.
(d) “Committee” means the Veterans Finance Committee of 1943,
established by Section 991.
(e) “Fund” means the Veterans’ Farm and Home Building Fund of 1943,
established by Section 988.
(f) “Payment Fund” means the Veterans’ Bonds Payment Fund established
by Section 988.6.
998.603. For the purpose of creating a fund to provide farm and home
aid for veterans in accordance with the Veterans’ Farm and Home Purchase
Act of 1974 (Article 3.1 (commencing with Section 987.50)), and of all acts
amendatory thereof and supplemental thereto, the committee may create a
debt or debts, liability or liabilities, of the State of California, in the aggregate
amount of not more than one billion dollars ($1,000,000,000), exclusive of
refunding bonds, in the manner provided herein.
998.604. (a) All bonds authorized by this article, when duly sold and
delivered as provided herein, constitute valid and legally binding general
obligations of the State of California, and the full faith and credit of the
State of California is hereby pledged for the punctual payment of both
principal and interest thereof.
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(b) 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, these bonds as provided herein, and all officers required by law to
perform any duty in regard to the collection of state revenues shall collect
this additional sum.
(c) On the dates on which funds are to be remitted pursuant to Section
16676 of the Government Code for the payment of debt service on the bonds
in each fiscal year, there shall be transferred to the Payment Fund to pay
the debt service all of the money in the fund, not in excess of the amount
of debt service then due and payable. If the money transferred on the
remittance dates is less than debt service then due and payable, the balance
remaining unpaid shall be transferred to the General Fund out of the fund
as soon as it shall become available, together with interest thereon from the
remittance date until paid, at the same rate of interest as borne by the bonds,
compounded semiannually. Notwithstanding any other provision of law to
the contrary, this subdivision shall apply to all veterans’ farm and home
purchase bond acts pursuant to this chapter. This subdivision does not grant
any lien on the fund, the Payment Fund, or the moneys therein to the holders
of any bonds issued under this article. For the purposes of this subdivision,
“debt service” means the principal (whether due at maturity, by redemption,
or acceleration), premium, if any, or interest payable on any date with respect
to any series of bonds. This subdivision shall not apply, however, in the
case of any debt service that is payable from the proceeds of any refunding
bonds.
998.605. There is hereby appropriated from the General Fund, for
purposes of this article, a sum of money that will equal both of the following:
(a) That sum annually necessary to pay the principal of, and the interest
on, the bonds issued and sold as provided herein, as that principal and interest
become due and payable.
(b) That sum necessary to carry out Section 998.606, appropriated without
regard to fiscal years.
998.606. For the purposes of this article, the Director of Finance may,
by executive order, authorize the withdrawal from the General Fund of a
sum of money not to exceed the amount of the unsold bonds which have
been authorized by the committee to be sold pursuant to this article. Any
sums withdrawn shall be deposited in the fund. All moneys made available
under this section to the board shall be returned by the board to the General
Fund, plus the interest that the amounts would have earned in the Pooled
Money Investment Account, from the sale of bonds for the purpose of
carrying out this article.
998.607. 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 the purposes of carrying
out this article. The amount of the request shall not exceed the amount of
unsold bonds which the committee has, by resolution, authorized to be sold
for the purpose of carrying out this article. The board shall execute whatever
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Ch. 365— 11 —
documents are required by the Pooled Money Investment Board to obtain
and repay the loan. Any amounts loaned shall be deposited in the fund to
be allocated by the board in accordance with this article.
998.608. Upon request of the board, supported by a statement of its plans
and projects approved by the Governor, the committee shall determine
whether to issue any bonds authorized under this article in order to carry
out the board’s plans and projects, and, if so, the amount of bonds to be
issued and sold. Successive issues of bonds may be authorized and sold to
carry out these plans and projects progressively, and it is not necessary that
all of the bonds be issued or sold at any one time.
998.609. (a) As long as any bonds authorized under this article are
outstanding, the Secretary of Veterans Affairs shall, at the close of each
fiscal year, require a survey of the financial condition of the Division of
Farm and Home Purchases, together with a projection of the division’s
operations, to be made by an independent public accountant of recognized
standing. The results of each survey and projection shall be reported in
writing by the public accountant to the Secretary of Veterans Affairs, the
California Veterans Board, the appropriate policy committees dealing with
veterans affairs in the Senate and the Assembly, and the committee.
(b) The Division of Farm and Home Purchases shall reimburse the public
accountant for these services out of any money that the division may have
available on deposit with the Treasurer.
998.610. (a) The committee may authorize the Treasurer to sell all or
any part of the bonds authorized by this article at the time or times
established by the Treasurer.
(b) Whenever the committee deems it necessary for an effective sale of
the bonds, the committee may authorize the Treasurer to sell any issue of
bonds at less than their par value, notwithstanding Section 16754 of the
Government Code. However, the discount on the bonds shall not exceed 3
percent of the par value thereof.
998.611. Out of the first money realized from the sale of bonds as
provided herein, there shall be redeposited in the General Obligation Bond
Expense Revolving Fund, established by Section 16724.5 of the Government
Code, the amount of all expenditures made for the purposes specified in
that section, and this money may be used for the same purpose and repaid
in the same manner whenever additional bond sales are made.
998.612. Any bonds issued and sold pursuant to this article may be
refunded in accordance with Article 6 (commencing with Section 16780)
of Chapter 4 of Part 3 of Division 4 of Title 2 of the Government Code. The
approval of the voters for the issuance of bonds under this article includes
approval for the issuance of bonds issued to refund bonds originally issued
or any previously issued refunding bonds.
998.613. Notwithstanding any provision of the bond act, if the Treasurer
sells bonds under this article for which bond counsel has issued an opinion
to the effect that the interest on the bonds is excludable from gross income
for purposes of federal income tax, subject to any conditions which may be
designated, the Treasurer may establish separate accounts for the investment
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of bond proceeds and for the earnings on those proceeds, and may use those
proceeds or earnings to pay any rebate, penalty, or other payment required
by federal law or take any other action with respect to the investment and
use of bond proceeds required or permitted under federal law necessary to
maintain the tax-exempt status of the bonds or to obtain any other advantage
under federal law on behalf of the funds of this state.
998.614. The Legislature hereby finds and declares that, inasmuch as
the proceeds from the sale of bonds authorized by this article 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 Article XIII B.
SEC. 5. Sections 3 and 4 of this act shall become operative upon the
adoption by the voters of the Veterans and Affordable Housing Bond Act
of 2018.
SEC. 6. Sections 3 and 4 of this act shall be submitted by the Secretary
of State to the voters as a single measure, the Veterans and Affordable
Housing Bond Act of 2018, at the November 6, 2018, statewide general
election.
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 maximize the time available for the analysis and preparation
of the proposed issuance of bonds pursuant to Sections 3 and 4 of this act,
it is necessary that this act take effect immediately.
O
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Ch. 365— 13 —
RESOLUTION NO. ____________
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL
SUPPORTING THE $4 BILLION VETERANS AND
AFFORDABLE HOUSING BOND ACT ON THE
NOVEMBER 6, 2018 STATE BALLOT.
WHEREAS, housing affordability is an urgent issue facing many communities in
California, where a majority of renters (3 million households) pay more than 30 percent
of their income toward rent and nearly one-third (over 1.5 million households) spend
more than 50 percent of their income on rent; and
WHEREAS, the housing crisis is a contributing factor to homelessness in our
communities; and
WHEREAS, California’s homeownership rates are at the lowest point since the
1940’s; and
WHEREAS, recent housing production levels are about half of pre-recession
levels (roughly 200,000 per year) and are far short of the state’s projected housing need
for 180,000 new homes per year; and
WHEREAS, the proceeds from the 2006 housing bond that helped create and
preserve affordable apartments, urban infill infrastructure, and single-family homes have
been expended; and
WHEREAS, even though federal funding for affordable housing comprises a
significant portion of California’s resources to support affordable housing, federal
spending has been on the decline in recent years; and
WHEREAS, between 2003 and 2015, Community Development Block Grant
(CDBG) and HOME funds allocated to California by the U.S. Department of Housing and
Urban Development (HUD) to produce affordable housing units have declined by 51
percent and 66 percent respectively; and
WHEREAS, last year the Legislature passed and Governor Brown signed SB 3
(Beall), which placed the $4 billion Veterans and Affordable Housing Bond Act on the
November 6, 2018 general election ballot; and
WHEREAS, the Veterans and Affordable Housing Bond Act will provide funding
to support multifamily housing, higher density housing near transit, infill infrastructure,
farmworker housing, first-time home buyer assistance, and veteran home loans;
NOW, THEREFORE, BE IT RESOLVED by the San Rafael City Council that the
City of San Rafael hereby supports the Veterans and Affordable Housing Bond Act on
the November 6, 2018 ballot to infuse much needed funding to support important
affordable housing projects and spur housing construction statewide; and
BE IT FURTHER RESOLVED that the City of San Rafael supports and can be
listed as a member of the Affordable Housing Now coalition.
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing
resolution was duly and regularly introduced and adopted at a regular meeting of the City
Council of the City of San Rafael, held on Monday the 18th day of June, 2018, by the following
vote, to wit:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
________________________________
LINDSAY LARA, City Clerk
