Proposition 1C			00.00 10.05
	Full Extract
	Submitted as: "Housing and Emergency Shelter Trust Fund Act of 2006"
	Type:  Amendment to the Health and Safety Code
	Subject:  $2.85 Billion Bond to finance existing housing programs, for capital outlay related to infill developments, brownfield cleanup for infill development, and parks for housing.
	Submitters:  Perata, Nunez, California Legislature, SB 1689
		Senate Vote: 27 Yes, 11 No (of 40)
		Assembly Vote: 54 Yes, 16 No (of 80)
	Supporting Organization:
		Name:	The Rebuild California Plan 1127 11th Street, Suite 950 Sacramento, CA 95814
		Email:
		Web Site: www.plan4ourfuture.org
		Phone:  - 916.443.5900
	Opposing Organization:
		Name:	Assemblyman Chuck DeVore California State Assembly 4790 Irvine Blvd., Ste. 105-191 Irvine, CA 92620
		Email: NoProp1C at aol.com
		Web Site: www.noprop1c.com
		Phone: (916) 991-9300
	Section 1
	Background discussion.
	Section 2
	Adds Part 12 to Division 31 of the Health and Safety Code.
	53545 Creates Housing and Emergency Shelter Trust Fund of 2006 in State Treasury.
	53545 (a) (1)  Deposits $1.5 billion in an Affordable Housing Account, created by this measure for this purpose, to be continuously appropriated in the following way:
		(A) (i) $345 million transferred to the Housing Rehabilitation Loan Fund (HRLF), a previously existing fund, to be used for the Multifamily Housing Program (MHP) [The purpose of the MHP (50675 of this Code) is to "assist the new construction, rehabilitation and preservation of permanent and transitional rental housing for lower income households".  The purpose of the HRLF (50661 of this Code) is to provide a source for making deferred payment rehabilitation loans.]
		(A) (ii) $50 million transferred to the Housing Rehabilitation Loan Fund to be used for the Multifamily Housing Program, in this case specifically to provide housing for homeless youth [11193.3 (e) (2 and 3)].  If not used in 30 months, these funds revert to general use in the Program.
		(B) $195 million transferred to the Housing Rehabilitation Loan Fund to be used for the Multifamily Housing Program, specifically "to be used for supportive housing for individuals and households moving from emergency shelters or transitional housing or those at risk of homelessness".   Priority in giving this support will go to:
			(i) Disabled who would otherwise be at high risk of homelessness, collaborating with programs that support the disabled person's needs.
			(ii) Projects "that demonstrate funding commitments from local governments."
		(C) $135 million transferred "to the fund created by [50517.5 (b)] to be expended for the programs authorized [50517.5 and on]".  [The fund created is the Joe Serna, Jr. Farmworker Housing Grant Fund.  The program authorized there is the Joe Serna, Jr. Farmworker Housing Grant Program, whose purpose is "the construction or rehabilitation of housing for agricultural employees and their families."
		(D) $300 million transferred to the Self-Help Housing Fund, a previously existing fund, to be made available to the Department of Housing and Community Development to enable households to become or remain homeowners under the CalHome Program.  $10 million of this will go to construction management under the California Self-Help Housing Program (CSHP).  (The purpose of the CalHome Program is to "enable low and very-low income households to become or remain homeowners."  The purpose of the CHSP is to "fund programs that assist low and moderate income families to build their homes with their own labor."
		(E) $200 million transferred to the Self-Help Housing Fund, to be made available to the California Housing Finance Agency, to be spent for the purposes of the California Homebuyer's Downpayment Assistance Program (CHDAP).  Up to $100 million may be spent in the special way xxxx.  [The purpose of the CHDAP is "to provide a deferred payment, simple interest rate junior loan of an amount up to three percent (3%) of the sales price or appraised value, whichever is less."
		(F) $100 million transferred to the Affordable Housing Innovation Fund, created by this measure for this purpose, to be administered by the Department of Housing and Community Development, to be used for grants or loans to sponsors of affordable housing and to finance the creation of "demonstrate innovative, cost-saving approaches to creating or preserving affordable housing." If not used in 30 months, these funds revert to general use in the Self-Help Housing Fund.
		(G) $125 million transferred to the Building Equity and Growth in Neighborhoods Fund, previously existing, to be used for the Building Equity and Growth in Neighborhoods Program (BEGIN).  If not used in 30 months, these funds revert to general use in the Calhome Program.  [The purpose of BEGIN is "to reduce local regulatory barriers to affordable ownership housing, and provide downpayment assistance loans to qualifying first-time low- and moderate-income buyers of homes in BEGIN projects."
		(H) $50 million transferred to the Emergency Housing and Assistance Fund for capitol development grants under the Emergency Housing and Assistance program (EHAP), administered by the Department of Housing and Community Development. [The purpose of EHAP is to "provide facility operating grants for emergency shelters, transitional housing projects, and supportive services for homeless individuals and families."
	53545 (a) (2)  Specifically allows the Legislature to modify funded programs in order to improve the program.
	53545 (a) (3)  Calls for a periodic audit by the Bureau of State Audits of the expenditure of the Bond proceeds.
	53545 (a) (4)  Calls for a annual report o of how the funds were made available, by the Department of Housing and Community Development, to be available on its Internet Web site.
	53545 (b) Deposits $850 million in the Regional Planning, Housing, and Infill Incentive Account, created by this measure for this purpose, for appropriation by the Legislature for the following purposes:
	53545 (b) (1)  Infill incentive grants for capital outlay related to infill housing development, including at least the following:
		(A) Up to $200 million for parks.
		(B) Water, sewer and other public infrastructure work.
		(C) Transportation improvements.
		(D) Traffic mitigation
	53545 (b) (2)  Brownfield cleanup.
	53545 (c) Deposits $300 million in the Transit Oriented Development Account, created by SB1689 [See Section 3 below] for this purpose, to be transferred to the Transit-Oriented Development Implementation Fund (TODIF) to be used for the Transit-Oriented Development Implementation Program (TODIP).  [The TODIF and TODIP are also created by SB1689.]
	53545 (d) Deposits $200 million in the Housing Urban-Suburban-and-Rural Parks Account, for later appropriation by the Legislature, for housing-related park grants.
	53546 Authorizes sale of a total $2.85 billion in bonds, and pledges full faith and credit of the State for their repayment.
	53547 Specifies that bond handling is to be consistent with the State General Obligation Bond Law, part of this [Government] Code, starting with section 16720, except Section 16727 (a) where that is inconsistent with this initiative. [16727 limits what bond proceeds may be spent upon, and (a) talks about the costs of construction or acquisition of capital assets.]
	53548 (a) Continues the existence of the Housing Finance Committee, and makes it the committee for this bond.
	53548 (b) Allows the Committee to set its own guidelines.
	53548 (c) Makes the Department of Housing and Community Development and the California Housing Finance Agency the "board", respectively, for programs managed by them.
	53549 Authorizes the Committee, upon request by the board, to issue bonds, at times and in amounts to be determined by the Committee.
	53550 Demands that "there shall be collected annually, ... in addition to the ordinary revenue of the state", "a sum of money ... sufficient to pay the principal of, and interest on" the bonds.
	53551 Contrary to Section 13340 of the Government Code, this initiative immediately withdraws from the General Fund an amount equal to the sum of (a) the principal and interest on the bonds, when they become due and payable, and (b) any additional funds required to carry out 53552 below.  [13340 says "on and after July 1, 2007, no moneys in any fund that, by any statute other than a Budget Act, are continuously appropriated without regard to fiscal years, may be encumbered unless the Legislature, by statute, specifies that the moneys in the fund are appropriated for encumbrance. "]
	53552 The board may request the Pooled Money Investment Board (PMIB) to make a loan from the Pooled Money Investment Account (PMIA), per Section 16312 of the Government Code.  The amount requested may not exceed the amount of bonds authorized to be sold but not yet actually sold. [The PMIB, consisting of the Controller, Treasurer and Director of Finance, is created and discussed starting at 16480 of the Government Code.  The PMIA holds state funds available for expenditure but not currently committed.]
	53553 The Director of Finance may, by Executive Order, withdraw from the General Fund any amount less than the amount of bonds authorized to be sold but not yet actually sold.  Amounts withdrawn MUST be deposited to the Housing and Emergency Shelter Trust Fund of 2006.   The sale of bonds must then be used to repay the amount withdrawn.
	53554 Bonds may be refunded.  Voter approval of this initiative constitutes approval of refunding bonds.  ["Refund" means to pay off an existing bond by taking out a new one, for example at a lower interest rate.]
	53555 The maturity period for the Bonds may not exceed 30 years (xxxx consistent with Bond Law?)
	53556 The Legislature declares revenues from this bond are not "proceeds of taxes" and therefore not liable to the limitations imposed by Article XIII B of the state Constitution [Prop 13]
	53557 The Treasurer is authorized to maintain a separate account to hold and handle investment earnings, and pay out these earnings as necessary to maintain the Federal tax-exempt status of the bonds.
	53558 Any interest paid on the bonds shall be transferred to the General Fund as a credit to expenditures for bond interest.
	Section 3
	Adds Part 12 to Division 31 of the Health and Safety Code  [NOTE:  This text is referred to by Measure 1C, but is not part of it, because it simply changes the Health and Safety Code, without any associated bond, requiring no vote from the electorate].
	53560 Establishes the Transit-Oriented Development Implementation Program, to be administered by the Department of Housing and Community Development to foster higher density uses with close proximity to transit stations.
	53561 (a) Creates the Transit-Oriented Development Implementation Fund in the State Treasury.
	53561 (b) Specifies that interest made on loans "from the fund shall be deposited in the fund".
	53561 (c) Specifies that income from investments or deposits "in the fund shall accrue to the fund", in contradiction of 16305.7 of the Government Code [Section 16305.7 says "Any increment collected as the result of investment of state money shall be collected by the State Treasurer and reported by him to the State Controller for credit to the General Fund in the State Treasury."].  The following will be paid into the fund:
	53561 (c) (1) Money appropriated by the Legislature for the purposes of the fund.
	53561 (c) (2) Money in repayment of loans.
	53561 (c) (2) Any other money made available to the Department for this purpose.
	53562 (a) To the extent that money is available, the Department will make grants toward the creation of higher density infrastructure.
	53562 (b) To the extent that money is available, the Department will make loans to support housing developments with close proximity to a transit station.  At least 15% of the units in the development must be "affordable" to rent or buy for persons who have low or very low income, for a period of 55 years.  At least a portion of the developments must be within 1/4 mile of a transit station.  The development may be mixed-use.
	53562 (c) Defines "transit station", by reference to Government Code 65460.1., which defines it as "a rail or light-rail station, ferry terminal, bus hub, or bus transfer station".
	53563 (a) As a ranking tool to respond to applications, the Department will consider the extent to which the development will increase public transit ridership.
	53563 (b) "Bonus points" will also be given to projects that part of an infill plan.
	53564 (a) The Department may use, for its administration costs, up to 5% of the funds appropriated
	53564 (b) The Department may administer the Program per its own guidelines, not subject to Chapter 3.5 of the Government Code.  [Chapter 3.5 governs "Administrative Regulations and Rulemaking"]
	Section 4
	Puts Section 2 into effect following adoption of this initiative by the voters.
	Section 5
	Contrary to sections 13115 and 13117 of the Elections Code, specifies a numbering scheme and order for this and 4 other initiatives created by the Legislature.  [Section 13115 specifies a certain order in which measures are to appear on the ballot.  13117 requires Measures to be numbered in a continuous sequence.  The 1A, 1B ... sequence would otherwise violate this.]
	Section 6
	Contrary to sections 13247 and 13281 of the Elections Code, specifies the exact wording to be used on the ballot to describe this Initiative.  [13427 limits the ballot statement to an abbreviated 75 words prepared by the Attorney General; 13281 repeats this]
	Section 7
	Declares SB 1689 to be an emergency act, because of the need to get the initiative onto the November 2006 ballot
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