HomeMy WebLinkAboutAGENDA REPORT 2012 0516 CC REG ITEM 09D ITEM 9.D.
v OF FMORPARK.CAL IFCPl
City Council Meeting
ACTION:
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council �'lh
FROM: Deborah S. Traffenstedt, Deputy City Manager
DATE: May 10, 2012 (CC Meeting of 05/1612)
SUBJECT: Consider City's Position on Senate Bill (SB) 1220 (DeSaulnier)— Housing
Opportunity and Market Stabilization Act
BACKGROUND AND DISCUSSION
This bill would enact the Housing Opportunity and Market Stabilization (HOMeS)Trust Fund
Act of 2012. 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 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,
except those expressly exempted from payment of recording fees. The legislation also
includes that the fee 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.
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 HOWS Trust Fund, which the bill would create within the State Treasury. The bill
would provide that moneys in the fund may be expended for the purpose of supporting
affordable housing, as specified (including 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).
The bill would impose certain auditing and reporting requirements.
This legislation is intended to establish a permanent, ongoing source of funding dedicated to
affordable housing development. Staff will be seeking additional information on the proposed
recording fee, and if we are able to locate any additional information on the fee component of
this legislation, we will provide this information to Council at or before the May 16 meeting.
The League of California Cities has a watch position on this legislation.
If the City Council determines to take a position of this legislation, staff will prepare a letter of
support or opposition, or will continue to monitor the League's recommendation.
149
Honorable City Council
May 16, 2012, Regular Meeting
Page 2
FISCAL IMPACT
The bill would impose a fee 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, except those
expressly exempted from payment of recording fees.
STAFF RECOMMENDATION
Direct staff as deemed appropriate
Attachments:SB 1220 Status, Summary, and Bill as amended 5/16/12
150
SB 1220 Assembly Bill - Status Page 1 of 1
CURRENT BILL STATUS
MEASURE : S.B. No. 1220
AUTHOR(S) DeSaulnier and Steinberg (Principal coauthor: Assembly
Member Atkins) (Coauthors: Senators Leno and Rubio) .
TOPIC Housing Opportunity and Market Stabilization (HOMeS)
Trust Fund Act of 2012.
HOUSE LOCATION SEN
+LAST AMENDED DATE 04/16/2012
TYPE OF BILL :
Active
Non-Urgency
Non-Appropriations
2/3 Vote Required
State-Mandated Local Program
Fiscal
Non-Tax Levy
LAST HIST. ACT. DATE: 05/07/2012
LAST HIST. ACTION Placed on APPR. suspense file.
COMM. LOCATION SEN APPROPRIATIONS
TITLE 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.
151
httD://www.leginfo.ca.gov/pub/11-12/bill/sen/sb 1201-1250/sb_1220 bill_20120508_statu... 5/10/2012
SB 1220 Senate Bill - History Page 1 of 1
COMPLETE BILL HISTORY
BILL NUMBER : S.B. No. 1220
AUTHOR DeSaulnier
TOPIC Housing Opportunity and Market Stabilization (HOMeS) Trust Fund
Act of 2012.
TYPE OF BILL :
Active
Non-Urgency
Non-Appropriations
2/3 Vote Required
State-Mandated Local Program
Fiscal
Non-Tax Levy
BILL HISTORY
2012
May 7 Placed on APPR. suspense file.
Apr. 27 Set for hearing May 7 .
Apr. 26 From committee: Do pass and re-refer to Com. on APPR. (Ayes 5.
Noes 2. Page 3304 . ) (April 25) . Re-referred to Com. on APPR.
Apr. 25 From committee: Do pass and re-refer to Com. on GOV. & F. (Ayes 6.
Noes 2. Page 3314 . ) (April 24) . Re-referred to Com. on GOV. & F.
Apr. 18 Set for hearing April 25 in GOV. & F. pending receipt.
Apr. 16 From committee with author's amendments. Read second time and
amended. Re-referred to Com. on T. & H.
Apr. 12 From committee with author's amendments. Read second time and
amended. Re-referred to Com. on T. & H. Set for hearing April 24 .
Mar. 8 Referred to Coms. on T. & H. and GOV. & F.
Feb. 24 From printer. May be acted upon on or after March 25.
Feb. 23 Introduced. Read first time. To Com. on RLS. for assignment. To
print.
152
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Measure Information Page 1 of 1
CALIFORNIA UAGUE
OF
CITIES
SB 1220 DeSaulnier Housing Opportunity and Market Stabilization(HOMeS)Trust Fund Act of 2012.
Status: 5/7/2012 Placed on APPR.suspense file.
Current Location: 5/7/2012 S-APPR. SUSPENSE FILE
2YR/Dead I Ist Desk I 1st Policy Ist Fiscal I Ist Floor I 2nd Desk I 2nd Policy 2nd Fiscal I 2nd Floor I Conf./Cone.I Enrolled I Vetoed I Cha tered
Status History Short Summary Long Summary User Summary Digest
Primary Lobbyist Policy Committee Topic
Carogg.Dan Housing Community and Economic Kolpitcke,Kirstin
Development,Revenue_and Taxation
League Position Position Taken 2nd Lobbyist Policy Analyst
Watch RDA next steps
Notes:
Calendar
Bill Text
Amended-4/16/2012 html
Amended-4/16/2012Ftifdl
Amended-4/12/2012 html
Amended-4/12/2012F43Pdf
Introduced-2/23/2012 html
Introduced-2/23/2012fklpdf
Analyses
S-APPROPRIATIONS 5/7/20121itml
S-GOVERNANCE AND FINANCE 4/19/2012html
S-TRANSPORTATION AND HOUSING 4/19/2012html
Votes
SEN.APPR.-5/7/2012(Y:7 N:0 A:0)html
SEN. GOV. &F.-4/25/2012(Y:5 N:2 A:2%tml
SEN.T. &H.-4/24/2012(Y:6 N:2 A:1)html
Affecting Same Code
Governor Message
Attachments/Links
153
http://ct2k2.capitoltrack.com/Billlnfo.asp?ss=5 3 61cc-search l.xsl&org=all&measure=S B%... 5/10/2012
Summary Page 1 of I
SB 1220 (DeSauInier)Housing Opportunity and Market Stabilization(HOMeS)Trust Fund Act of 2012.
From text dated: 04/16/12
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 Housing Opportunity and Market
Stabilization (HOMeS) Trust Fund Act of 2012. 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 Housing Opportunity and Market Stabilization (HOMeS) Trust Fund, which the
bill would create within the State Treasury. The bill would provide that moneys in the fund may be
expended for the purpose of supporting affordable housing, as specified. The bill would impose
certain auditing and reporting requirements. This bill contains other related provisions and other
existing laws.
154
http://ct2k2.capitoltrack.com/BillSummary.asp?item=ShortSummary&measure=SB 1220 5/10/2012
AMENDED IN SENATE APRIL 16, 2012
AMENDED IN SENATE APRIL 12, 2012
SENATE BILL No. 1220
Introduced by Senators DeSaulnier and Steinberg
(Principal coauthor: Assembly Member Atkins)
(Coauthors: Senators Leno and Rubio)
February 23, 2012
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 1220,as amended,DeSaulnier.Housing Opportunity and Market
Stabilization(HOMeS)Trust Fund Act of 2012.
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 Housing Opportunity and Market
Stabilization (HOMeS) Trust Fund Act of 2012. 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
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SB 1220 —2—
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 Housing Opportunity and Market Stabilization (HOMeS) Trust
Fund, which the bill would create within the State Treasury. The bill
would provide that moneys in the fund may be expended for the purpose
of supporting affordable housing, 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 '-/, 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.
State-mandated local program: yes.
The people of the State of California do enact as follows:
1 SECTION 1. This act shall be known as the Housing
2 Opportunity and Market Stabilization (HOMeS) Trust Fund Act
3 of 2012.
4 SEC.2. The Legislature finds and declares that having a healthy
5 housing market that provides an adequate supply of homes
6 affordable to Californians at all income levels is critical to the
7 economic prosperity and quality of life in the state.The Legislature
8 further finds and declares all of the following:
9 (a) Funding approved by the state's voters in 2002 and 2006,
10 as of June 2011,has financed the construction,rehabilitation, and
11 preservation of over 11,600 shelter spaces and 57,220 affordable
12 apartments, including 2,500 supportive homes for people
13 experiencing homelessness. In addition, these funds have helped
14 57,290 families become or remain homeowners. Nearly all of the
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1 voter-approved funding for affordable housing was awarded by
2 the beginning of 2012.
3 (b) The requirement in the Community Redevelopment Law
4 that redevelopment agencies set aside 20 percent of tax increment
5 for affordable housing generated roughly one billion dollars
6 (S 1,000,000,000)per year.With the elimination of redevelopment
7 agencies, this funding stream has disappeared.
8 (c) California has 12 percent of the United States population
9 but 21.4 percent of its homeless population. Seventy-three percent
10 of people experiencing homelessness in California fell into it
11 because they could not afford a place to live. Sixty-two percent of
12 homeless Californians are unsheltered, 14 percent are veterans,
13 and 20 percent are families.
14 (d) Furthermore, 4 of the top 10 metropolitan areas in the
15 country for homeless are in the following metropolitan areas in
16 California: San Jose-Sunnyvale-Santa Clara, Los Angeles-Long
17 Beach-Santa Ana, Fresno, and Stockton.
18 (e) California continues to have the second lowest
19 homeownership rate in the nation, and minimum wage earners
20 have to work 120 hours per week to afford the average
21 two-bedroom apartment.
22 (f) Millions of Californians are affected by the state's chronic
23 housing shortage,including seniors,veterans,people experiencing
24 chronic homelessness, working families, people with mental,
25 physical,or developmental disabilities,agricultural workers,people
26 exiting jails, prisons, and other state institutions, survivors of
27 domestic violence, and former foster and transition-aged youth.
28 (g) While the current credit and foreclosure crisis has resulted
29 in reductions in home prices in some areas,it has increased pressure
30 on the rental housing market and slowed new housing production
31 of all types,exacerbating the mismatch between the ever increasing
32 number of households that need housing they can afford and the
33 supply.
34 (h) California's workforce continues to experience longer
35 commute times as persons in the workforce seek affordable housing
36 outside the areas in which they work. If California is unable to
37 support the construction of affordable housing in these areas,
38 congestion problems will strain the state's transportation system
39 and exacerbate greenhouse gas emissions.
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SB 1220 —4—
1 (1) Many economists agree that the state's unemployment rate
2 of over 11 percent is due in large part to massive shrinkage in the
3 construction industry from 2005 to 2009,including losses of nearly
4 700,000 construction-related jobs, a 60-percent decline in
5 construction spending, and an83-percent reduction in residential
6 permits. Restoration of a healthy construction sector will
7 significantly reduce the state's unemployment rate.
8 0) The lack of sufficient housing impedes economic growth
9 and development by making it difficult for California employers
10 to attract and retain employees.
11 (k) To keep pace with continuing demand, the state should
12 identify and establish a permanent, ongoing source or sources of
13 funding dedicated to affordable housing development. Without a
14 reliable source of funding for housing affordable to the state's
15 workforce and most vulnerable residents, the state and its local
16 and private housing development partners will not be able to
17 continue increasing the supply of housing after existing housing
18 bond resources are depleted.
19 (/) The investment will leverage billions of dollars in private
20 investment, lessen demands on law enforcement and dwindling
21 health care resources as fewer people are forced to live on the
22 streets or in dangerous substandard buildings, and increase
23 businesses' ability to attract and retain skilled workers.
24 (m) In order to promote housing and homeownership
25 opportunities,the recording fee imposed by this act should not be
26 applied to any recordings made in connection with a sale of real
27 property. Purchasing housing is likely the largest purchase made
28 by Californians, and it is the intent of this act not to increase
29 transaction costs associated with these transfers.
30 SEC. 3. Section 27388.1 is added to the Government Code,to
31 read:
32 27388.1. (a) (1) Except as provided in paragraph (2), in
33 addition to any other recording fees specified in this code, a fee
34 of seventy-five dollars($75) shall be paid at the time of recording
35 of every real estate instrument, paper, or notice required or
36 permitted by law to be recorded except those expressly exempted
37 from payment of recording fees."Real estate instrument"includes,
38 but is not limited to, the following documents: deed, grant deed,
39 trustee's deed, deed of trust, reconveyance, quit claim deed,
40 fictitious deed of trust, assignment of deed of trust, request for
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-5— S13 1220
1 notice of default, abstract of judgment, subordination agreement,
2 declaration of homestead, abandonment of homestead, notice of
3 default,release or discharge,easement,notice of trustee sale,notice
4 of completion, UCC financing statement, mechanic's lien, maps,
5 and covenants, conditions, and restrictions.
6 (2) The fee described in paragraph (1) shall not be imposed-at
7 the time of feeording o on any real estate instrument, paper, or
8 notice recorded in connection with a transfer subject to the
9 imposition of a documentary transfer tax as defined in Section
10 11911 of the Revenue and Taxation Code.
11 (b) The fees, after deduction of any actual and necessary
12 administrative costs incurred by the county in carrying out this
13 section, shall be sent quarterly to the Department of Housing and
14 Community Development for deposit in the Housing Opportunity
15 and Market Stabilization (HOMeS) Trust Fund established by
16 Section 50471 of the Health and Safety Code to be expended for
17 the purposes set forth in that section. In addition, the county shall
18 pay to the Department of Housing and Community Development
19 interest, at the legal rate, on any funds not paid to the Controller
20 within 30 days of the end of a quarter.
21 SEC.4. Chapter 2.5(commencing with Section 50470)is added
22 to Part 2 of Division 31 of the Health and Safety Code, to read:
23
24 CHAPTER 2.5. HOUSING OPPORTUNITY AND MARKET
25 STABILIZATION (HOMES) TRUST FUND
26
27 Article 1. General Provisions
28
29 50470. This chapter shall be known, and may be cited, as the
30 Housing Opportunity and Market Stabilization (HOMeS) Trust
31 Fund Act of 2012.
32 50471. (a) There is hereby created in the State Treasury the
33 Housing Opportunity and Market Stabilization (HOMeS) Trust
34 Fund.All interest or other increments resulting from the investment
35 of moneys in the fund shall be deposited in the fund,
36 notwithstanding Section 16305.7 of the Government Code.Moneys
37 in the Housing Opportunity and Market Stabilization (HOMeS)
38 Trust Fund shall not be subject to transfer to any other fund
39 pursuant to any provision of Part 2 (commencing with Section
40 16300) of Division 4 of Title 2 of the Government Code, except
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SB 1220 —6—
1 to the Surplus Money Investment Fund. Upon appropriation by
2 the Legislature, moneys in the fund may be expended for the
3 purpose of supporting the development,acquisition,rehabilitation,
4 and preservation of housing affordable to low- and
5 moderate-income households, including, but not limited to,
6 emergency shelters; transitional and pennanent rental housing,
7 including necessary service and operating subsidies; foreclosure
8 mitigation; and homeownership opportunities.
9 (b) Both of the following shall be paid and deposited in the
10 fund:
11 (1) Any moneys appropriated and made available by the
12 Legislature for purposes of the fund.
13 (2) Any other moneys that may be made available to the
14 department for the purposes of the fund from any other source or
15 sources.
16
17 Article 2. Audits and Reporting
18
19 50475. The Bureau of State Audits shall conduct periodic audits
20 to ensure that the annual allocation to individual programs is
21 awarded by the department in a timely fashion consistent with the
22 requirements of this chapter. The first audit shall be conducted no
23 later than 24 months from the effective date of this section.
24 50476. In its annual report to the Legislature pursuant to
25 Section 50408, the department shall report how funds that were
26 made available pursuant to this chapter and allocated in the prior
27 year were expended. The department shall make the report
28 available to the public on its Internet Web site.
29 SEC. 5. No reimbursement is required by this act pursuant to
30 Section 6 of Article XIII B of the California Constitution because
31 a local agency or school district has the authority to levy service
32 charges, fees, or assessments sufficient to pay for the program or
33 level of service mandated by this act,within the meaning of Section
34 17556 of the Government Code.
O
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