HomeMy WebLinkAboutLegislative Review - AB 1754 (Committee on Housing and Community Development)m
CITY OF PALM DESERT
Community Services Division
Staff Report
REQUEST: CONSIDERATION OF LEGISLATIVE REVIEW COMMITTEE ACTION
ON AB 1754 (HOUSING AND COMMUNITY DEVELOPMENT
COMMITTEE) AT ITS MEETING OF APRIL 26, 2005
SUBMITTED BY: Patricia Scully, CFEE, Senior Management Analyst
DATE: May 12, 2005
CONTENTS: AB 1754 Language
RECOMMENDATION:
By Minute Motion, concur with the action taken by the Legislative Review Committee at Its
Meeting of April 26, 2005, and direct staff to prepare a letter of support for the Mayor's
signature with regard to AB 1754 (Housing and Community Development Committee) relative
to the California Housing Finance Agency.
EXECUTIVE SUMMARY:
Passage of AB 1754 would authorize the California Housing Finance Agency to issue bonds
for the purpose of making loans to local public entities.
BACKGROUND:
Current law provides that the California Housing Finance Agency's main goal is to meet the
housing needs of persons and families of low or moderate income. Existing law also authorizes
the Agency to issue bonds in the principal amount that the Agency determines necessary to
provide sufficient funds to finance housing developments and other residential structures, the
payment of interest on bonds of the Agency, the establishment of reserves, and other
expenditures of the Agency. This bill would authorize the California Housing Finance Agency
to issue bonds for the purpose of making loans to local public entities.
Because providing affordable housing in the State of California to very low, low, and moderate
income families has reached a critical stage, any assistance provided to local agencies to
expedite and implement programs which assist in this regard should prove beneficial to these
CITY COUNCIL STAFF REPORT
RE: AB 1754 MAY 12, 2005
communities; therefore, the Legislative Review Committee recommends that the City Council
support AB 1754 and direct staff to prepare a letter stating that position to appropriate
legislators for the Mayor's signature.
PATRICIA SCULLY, CFEE
SENIOR MANAGEMENT ANALYST
SHEILA R. GILLIGAN CARLOS L. ORTEGA
ACM/COMMUNITY SERVICES CITY MANAGER
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AB 1754 Assembly Bill - INTRODUCED Page 1 of 4
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BILL NUMBER: AB 1754 INTRODUCED
BILL TEXT
INTRODUCED BY Committee on Housing and Community Development
(Mullin (Chair), Garcia (Vice Chair), Baca, Hancock, La Suer,
Salinas, and Torrico)
MARCH 14, 2005
An act to amend Section 51350 of the Health and Safety Code,
relating to the California Housing Finance Agency.
LEGISLATIVE COUNSEL'S DIGEST
AB 1754, as introduced, Committee on Housing and Community
Development. California Housing Finance Agency.
Under existing law, the California Housing Finance Agency has, as
its primary purpose, meeting the housing needs of persons and
families of low or moderate income. Existing l,aw authorizes the
agency to issue bonds in the principal amount that the agency
determines necessary to provide sufficient funds for financing
housing developments and other residential structures, the payment of
interest on bonds of the agency, the establishment of reserves, and
other expenditures of the agency incident to issuance of the bonds.
This bill would authorize the agency to issue bonds for the
purpose of making loans to local public entities, and for the
purposes of the agency, pursuant to specified provisions of existing
law.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 51350 of the Health and Safety Code is
amended to read:
51350. (a) The agency-may, from time-to fime, issue its bonds in
the principal amount -whi�sY� that the
agency determines necessary to provide sufficient funds for financing
housing developments and other residential structures ��i
{^� , the payment of interest on bonds of the
agency, the establishment of reserves to secure the bonds,
-zaci- the payment of other expenditures
of the agency incident to, and necessary or convenient to, issuance
of the bonds , and for the other purposes provided by Sections
51065.5 and 51365 .
(b) (1) Sale of the bonds of the agency shall be coordinated by
the Treasurer. To obtain a date for the sale of bonds, the agency
shall inform the Treasurer of the amount of the proposed issue. Upon
that notification, the Treasurer shall provide three 10-day periods,
within the 90 days next following, when the bonds can be sold. The
agency may choose any date during the suggested periods or any other
date to which the agency and the Treasurer have mutually agreed. The
Treasurer shall sell the bonds on the date chosen accordinq to terms
approved by the agency.
(2) The agency shall exercise its powers with due regard for the
http://info.sen.ca.gov/pub/bilUasm/ab 1751-1800/ab_1754 bill 20050314_introduced.html 3/22/2005
AB I7S4 Assernbiy Bill - INTR4DUCED
right af the tso2ders of bonds of the agency at any time outstanding,
and nathing in, or done pursuant to, this section sha1J, in any way
li.mit, restrict, or alter the obligatian ar powers of the agency caz
any member, officer, or representative of the agency or the fireasurer
to carry out and perform in every detail each and every covenant,
agreement, oz contract at any �ime made ar entered into an behalf of
the agency wittt respect to its bonds or its hQnefits, or fihe security
ai' the halders of the bonds.
(cf Except as provided in subd.ivzsions (d}
�I. ""� ��-- to thl, inclus.ive, the aqgregate
przncipal amount of bonds � that
may be outstanding at any time p�rsuant ta this pazt shall nat exceed
seven hundred �'ifLy mi�lion dollars t$750,f�da,00�), exclusive of the
princa.pal indebtedness of bonds issued �o refund ar renew previously
issued bonds of the agency, to the �xtent of the outstanding
principa}� inc3ebtedness of the pxeviously issued bonds and any
redemption premium therean and any interest accrued ar ta accrue to
the date af reciemption of the bonds, c3uzinq the periad in which both
the pzeviausly issued bands and the refunding oz renewal bonds are
outstanding.
(d) Effective January 1, Z98D, the aggzegate pxincipal amount of
bonds --�i,cii.. that may be outstanding at
any time pursuant to this part sha12 be .increased by seven hundred
fifty mil2ion do�lars {$750,ppfl,400), exclusive of �1) bonds
previously authozized pursuant to subdivisian tc), and {2} the
principal indebtedness of honds issued to refund oz renew bonds of
the agency previously is�ued undez the autharity o� this subdivision,
but only to the sxtent of the outstandir�g grincipa2 indebtedness of
the previously issued bonds and any zedemption premi�.�m thereon and
any interest accxued or to accrue to the date of reciemption of �he
bonds, ciuring the period in which both the previousZy issued bonds
and [Yce refunding or renewa� bonds are outstanding.
{e) Effective �7anuary 1, 1983, the aggregate principal amount of
bonds �- that may be outstanding at
any time pursuant ta thzs part shall be additionally increased by
three hundred fifty million dallars ($3SO,OQp,OQO} exciusive o� {1)
bonds pzeviausly authorized pursuant to subdzvisian (c? or {d?, and
{2) the grincipal indebtedness of bonds issusd ta reiund or zenew
bonds of the agency previously issued under the� authority of this
subdivisian, but only to the extent of the outstanciing principal
indeb�edness of the previously issued bands and any redemption
pzemium thereon anci any interest accrued or to accrtze to the date of
the redemption af the bQnds, duzing the period in which both the
previausly issued bonds and the refunding or renewal bonds are
outstanding.
{f) Effective Janaary 2, 1984, the aggregate principal amount of
bonds -��.c�i-. thaC may be outstanding at
any time pursuant to this part sha11 be adciit.zonally increased by
fzve hundr�ri mzllion dallars tS540,000,000>, exclus�ve of (1} t�onds
pre�iously authori2ed pursuant to
-�w�— any af subdivisions (c) to (e), .inclusive ,
and (Z} �h� principal indebt�dness of bands issued to refund or renew
bonds af the agency pzevious�.y issued under the authority of this
subdivision, but only ta the extent of Lhe outsfianding principal
i.ndebtedness of the previous2y issued bonds and any redemptian
premium thereon and an}� interest accrued or to accrue to the date of
the redemptzon af tf�e bnrids, during the period in which both the
pzeviausly issued bonds and the refunding or renewal bonds are
outstanding.
(g} On the effective date of the amendments to ihis section
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AB 1754 Assembly Bill - INTRODUCED
enacted by the Statutes of 1985, the aggregate principal amount of
bonds � that may be outstanding at
any time pursuant to this part shall be additionally increased by six
hundred million dollars ($600,000,000), exclusive of (1) bonds
previously authorized pursuant to su}acii�ticion 4c.}�ci�, (�.},,.
=�'T=;— any of subdivisions (c) to (f), inclusive
, and (2) the principal indebtedness of bonds issued to refund
or renew bonds of the agency previously issued under the authority of
this subdivision, but only to the extent of the outstanding
principal indebtedness of the previously issued bonds and any
redemption premium thereon and any interest accrued or to accrue to
the date of the redemption of the bonds, during the period in which
both the previously issued bonds and the refunding or renewal bonds
are outstanding.
(h) On the effective date of the amendments to this section
enacted by the Statutes of 1985, the aggregate principal amount of
bonds •�-..:.�;._ that may be outstanding at
any time pursuant to this part shall be additionally increased by six
hundred million dollars ($600,000,000), exclusive of (1) bonds
previously authorized pursuant to subdivision �c�, Ed�� �s}.�
=`) "" ',�- any of subdivisions (c) to (q), inclusive
, and (2) the principal indebtedness of bonds issued to refund
or renew bonds of the agency previously issued under the authority
of this subdivision, but only to the extent of the outstanding
principal indebtedness of the previously issued bonds and any
redemption premium thereon and any interest accrued or to accrue to
the date of the redemption of the bonds, during the period in which
both the previously issued bonds and the refunding or renewal bonds
are outstanding.
(i) Effective September 4, 1990, the aggregate principal amount of
bonds •°�� �'� that may be outstanding at
any one time pursuant to this part shall be additionally increased
by nine hundred million dollars ($900,000,000), exclusive of the
following: (1) bonds previously authorized pursuant to
��}a�iivic�-er� �rc3� Ed�� f�r-�-{��) . . '�- any of
subdivisions (c) to (h), inclusive , and (2) the principal
indebtedness of bonds issued to refund or renew bonds of the agency
previously issued under the authority of this subdivision, but only
to the extent of the outstanding principal indebtedness of the
previously issued bonds and any redemption premium thereon and any
interest accrued or tb ac�Y`ue to the dat� of rthe redemption of the
bonds, during the period in which both the previously issued bonds
and the refunding or renewal bonds are outstanding.
(j) On the effective date of the amendments to this section which
-�- added this subdivision, the
aggregate principal amount of bonds -whicb
that may be outstanding at any one time pursuant to this part
shall be additionally increased by nine hundred million dollars
(5900,000,000), exclusive of the following: (1) bonds previously
authorized pursuant to cuk�dijricion {c�, ���, Eo�� Ef�, Eg�,
-t`') ,"" 'r�- any of subdivisions (c) to (i), inclusive
, and (2) the principal indebtedness of bonds issued to refund
or renew bonds of the agency previously issued under the authority of
this subdivision, but only to the extent of the outstanding
principal indebtedness of the previously issued bonds and any
redemption premium thereon and any interest accrued or to accrue to
the date of the redemption of the bonds, during the period in which
both the previously issued bonds and the refunding or renewal bonds
are outstanding.
(k) Effective January 1, 1998, the aggregate principal amount of
Page 3 of 4
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AB 1754 Assembly Bill - INTRODUCED
bonds —wb,icia.. that may be outstanding at
any one time pursuant to this part shall be additionally increased by
one billion four hundred million dollars ($1,400,000,000), exclusive
of: (1) bonds previously authorized pursuant to —s�'��'-=��
E��� f��� fo-�, Efi� Eg�, ��}� f��---�r FT any of
subdivisions (c) to (j), inclusive , and (2) the principal
indebtedness of bonds issued to refund or renew bonds of the agency
previously issued under the authority of this subdivision, but only
to the extent of the outstanding principal indebtedness of the
previously issued bonds and any redemption premium thereon and any
interest accrued or to accrue to the date of the redemption of the
bonds, during the period in which both the previously issued bonds
and the refunding or renewal bonds are outstandinq.
(1) Effective January 1, 2000, the aggregate principal amount of
bonds that may be outstandinq at any one time pursuant to this part
shall be additionally increased by two billion two hundred million
dollars ($2,200,000,000), exclusive of: (1) bonds previously
authorized pursuant to any of subdivisions (c) to (k),
inclusive, and (2) the principal indebtedness of bonds issued to
refund or renew bonds of the agency previously issued under the
authority of this subdivision, but only to the extent of the
outstanding principal indebtedness of the previously issued bonds and
any redemption premium thereon and any interest accrued or to accrue
to the date of the redemption of the bonds, during the period in
which both the previously issued bonds and the refunding or renewal
bonds are outstanding.
(m) Effective January 1, 2002, the aggregate principal amount of
bonds that may be outstanding at any one time pursuant to this part
shall be increased by two billion two hundred million dollars
(52,200,000,000), exclusive of (1) bonds previously authorized
pursuant to any of subdivisions (c) to (1), inclusive, and
(2) the principal indebtedness of bonds issued to refund or renew
bonds of the agency previously issued under the authority of this
subdivision, but only to the extent of the outstanding principal
indebtedness of the previously issued bonds and any redemption
premium thereon and any interest accrued or to accrue to the date of
the redemption of the bonds, during the period in which both the
previously issued bonds and the refunding or renewal bonds are
outstanding.
Page 4 of 4
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Sculiy, Pat
To: Coleman, Dennis
SubJect: RE: AB 1754
Thanks Dennis.
-----Original Message---
From: Coleman, Dennls
Sen� Tuesday, April 12, 2005 12:53 PM
To: Scully, Pdt
Subject: AB 1754
Thanks
Pat:
I recommend that we support the Assembly Btil 1754. This bill would authorize the California Housing and Finance
Agency to use bond funds to make loans to locai public agencies for the purpose of developing affordable housing for
low and moderate income households. This would provide another source of financing for the Agency in meeting its
obligations under the Stipulation with the Western Center.
Thanks,
Dennis
Dennis M. Coleman
Redevelopment and Housing Finance Manager
City of Palm Dese�t
73-510 Fred Waring Drive
Palm Desert, CA 92260
(760) 776-6341 (voice)
(760) 341-6372 (fax)
dcoleman@ci.palm-desert.ca.us