SB 679

Bill Subjects

Abstract

(1) Existing law provides for the establishment of various special districts that may support and finance housing development, including affordable housing special beneficiary districts that are authorized to promote affordable housing development with certain property tax revenues that a city or county would otherwise be entitled to receive. Existing law, the San Francisco Bay Area Regional Housing Finance Act, establishes the Bay Area Housing Finance Authority to raise, administer, and allocate funding for affordable housing in the San Francisco Bay area, as defined, and provide technical assistance at a regional level for tenant protection, affordable housing preservation, and new affordable housing production. This bill, the Los Angeles County Regional Housing Finance Act, would establish the Los Angeles County Affordable Housing Solutions Agency and would state that the agency's purpose is to increase the supply of affordable housing in Los Angeles County by providing for significantly enhanced funding and technical assistance at a regional level for renter protections, affordable housing preservation, and new affordable housing production, as specified. The bill would require a board composed of 21 voting members and one nonvoting member from Los Angeles County, as specified, to govern the agency. This bill would permit the board to determine its organizational structure and to delegate specified powers. The bill would require the board to form an oversight committee composed of 11 members and one nonvoting member to assist in the development of funding guidelines, implementation of agency programs, and approval of an expenditure plan, as specified. The bill would require the board to provide for annual audits of the agency's general administration, accounts, and records, including an independent financial and performance audit for bonds secured by ad valorem property taxes, and provide for financial reports. The bill would include findings that the provisions proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities within Los Angeles County, including charter cities. This bill would authorize the agency to, among other things, raise and allocate new revenue, incur and issue bonds and other indebtedness, and place on the ballot in Los Angeles County, including all of its incorporated cities, funding measures, in accordance with applicable constitutional and statutory requirements, to raise and allocate funds to the county, the cities in the county, and other public agencies and affordable housing projects within its jurisdiction for purposes of preserving and enhancing existing housing, funding renter protection programs, and financing new construction of housing developments, as specified. In this regard, the bill would authorize the entity, among other things, to impose various special taxes, including a parcel tax and a documentary transfer tax, within its jurisdiction, and to issue bonds secured by the levy of ad valorem property taxes, in accordance with applicable constitutional requirements, and revenue bonds payable from the revenues of the agency, other than revenues generated from ad valorem property taxes. The bill would require that revenue generated by the agency pursuant to these provisions be used for specified housing purposes and would require the agency to distribute those funds in accordance with specified requirements, including the adoption of an annual plan by the board. This bill would require that revenue be allocated according to a geographic distribution schedule, as specified. Existing law defines "public works," for the purposes of regulating public works contracts, as, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds. Existing law further requires that, except as specified, not less than the general prevailing rate of per diem wages be paid to workers employed on public works and imposes misdemeanor penalties for a willful violation of this requirement. Under this bill, a construction or rehabilitation project receiving certain funding associated with the agency, as described, would constitute a public work for which prevailing wages are required to be paid. The bill would also provide that certain projects with 40 units or greater are eligible to receive funding or financing from the agency only if all construction and rehabilitation is subject to the City of Los Angeles Department of Public Works PLA, as defined and specified, except that if a specific countywide project labor agreement, as defined, is negotiated, then the bill would provide that those projects are eligible for funding or financing from the agency only if all construction and rehabilitation is subject to that labor agreement rather than the Department of Public Works PLA, as specified. Because the willful violation of prevailing wage requirements when engaged in these public works projects would result in the imposition of misdemeanor penalties, this bill would impose a state-mandated local program. (2) The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA includes exemptions from its environmental review requirements for numerous categories of projects. This bill would exempt from the CEQA requirements certain actions taken by the agency. (3) This bill would make legislative findings and declarations as to the necessity of a special statute for Los Angeles County. (4) By adding to the duties of local officials with respect to elections procedures for revenue measures on behalf of the agency, this bill would impose a state-mandated local program. 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 with regard to certain mandates no reimbursement is required by this act for a specified reason. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.