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HEALTH AND SAFETY CODE
SECTION 53545-53545.14



53545.  The Housing and Emergency Shelter Trust Fund of 2006 is
hereby created in the State Treasury. The Legislature intends that
the proceeds of bonds deposited in the fund shall be used to fund the
housing-related programs described in this chapter over the course
of the next decade. 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) (1) One billion five hundred million dollars ($1,500,000,000)
to be deposited in the Affordable Housing Account, which is hereby
created in the fund. Notwithstanding Section 13340 of the Government
Code, the money in the account shall be continuously appropriated in
accordance with the following schedule:
   (A) (i) Three hundred forty-five million dollars ($345,000,000)
shall be transferred to the Housing Rehabilitation Loan Fund to be
expended for the Multifamily Housing Program authorized by Chapter
6.7 (commencing with Section 50675) of Part 2. The priorities
specified in Section 50675.13 shall apply to the expenditure of funds
pursuant to this clause.
   (ii) Fifty million dollars ($50,000,000) shall be transferred to
the Housing Rehabilitation Loan Fund to be expended under the
Multifamily Housing Program authorized by Chapter 6.7 (commencing
with Section 50675) of Part 2 for housing meeting the definitions in
paragraphs (2) and (3) of subdivision (e) of Section 11139.3 of the
Government Code. The department may provide higher per-unit loan
limits as necessary to achieve affordable housing costs to the target
population. Any funds not encumbered for the purposes of this clause
by July 31, 2011, shall revert for general use in the Multifamily
Housing Program unless the department determines that funds should
revert sooner due to diminished demand.
   (B) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Housing Rehabilitation Loan Fund to be expended
for the Multifamily Housing Program authorized by Chapter 6.7
(commencing with Section 50675) of Part 2, to be used for supportive
housing for individuals and households moving from emergency shelters
or transitional housing or those at risk of homelessness. The
Department of Housing and Community Development shall provide for
higher per-unit loan limits as reasonably necessary to achieve
housing costs affordable to those individuals and households. For
purposes of this subparagraph, "supportive housing" means housing
with no limit on length of stay, that is occupied by the target
population, as defined in subdivision (d) of Section 53260, and that
is linked to onsite or offsite services that assist the tenant to
retain the housing, improve his or her health status, maximize his or
her ability to live, and, when possible, work in the community. The
criteria for selecting projects shall give priority to:
   (i) Supportive housing for people with disabilities who would
otherwise be at high risk of homelessness where the applications
represent collaboration with programs that meet the needs of the
person's disabilities.
   (ii) Projects that demonstrate funding commitments from local
governments for operating subsidies or services funding, or both, for
five years or longer.
   (C) One hundred thirty-five million dollars ($135,000,000) shall
be transferred to the fund created by subdivision (b) of Section
50517.5 to be expended for the programs authorized by Chapter 3.2
(commencing with Section 50517.5) of Part 2.
   (D) Three hundred million dollars ($300,000,000) shall be
transferred to the Self-Help Housing Fund created by Section 50697.1.
These funds shall be available to the Department of Housing and
Community Development, to be expended for the purposes of enabling
households to become or remain homeowners pursuant to the CalHome
Program authorized by Chapter 6 (commencing with Section 50650) of
Part 2, except ten million dollars ($10,000,000) shall be expended
for construction management under the California Self-Help Housing
Program pursuant to subdivision (b) of Section 50696.
   (E) Two hundred million dollars ($200,000,000) shall be
transferred to the Self-Help Housing Fund created by Section 50697.1.
These funds shall be available to the California Housing Finance
Agency, to be expended for the purposes of the California Homebuyer's
Downpayment Assistance Program authorized by Chapter 11 (commencing
with Section 51500) of Part 3. Up to one hundred million dollars
($100,000,000) of these funds may be expended pursuant to subdivision
(b) of Section 51504.
   (F) One hundred million dollars ($100,000,000) shall be
transferred to the Affordable Housing Innovation Fund, which is
hereby created in the State Treasury, to be administered by the
Department of Housing and Community Development. Funds shall be
expended for competitive grants or loans to sponsoring entities that
develop, own, lend, or invest in affordable housing and used to
create pilot programs to demonstrate innovative, cost-saving
approaches to creating or preserving affordable housing. Specific
criteria establishing eligibility for and use of the funds shall be
established in statute as approved by a 2/3 vote of each house of the
Legislature. Any funds not encumbered for the purposes set forth in
this subparagraph within 30 months of availability shall revert to
the Self-Help Housing Fund created by Section 50697.1 and shall be
available for the purposes described in subparagraph (D).
   (G) One hundred twenty-five million dollars ($125,000,000) shall
be transferred to the Building Equity and Growth in Neighborhoods
Fund to be used for the Building Equity and Growth in Neighborhoods
(BEGIN) Program pursuant to Chapter 14.5 (commencing with Section
50860) of Part 1. Any funds not encumbered for the purposes set forth
in this subparagraph by November 17, 2011, shall revert for general
use in the CalHome Program unless the department determines that
funds should revert sooner due to diminished demand.
   (H) Fifty million dollars ($50,000,000) shall be transferred to
the Emergency Housing and Assistance Fund to be distributed in the
form of capital development grants under the Emergency Housing and
Assistance Program authorized by Chapter 11.5 (commencing with
Section 50800) of Part 2 of Division 31. The funds shall be
administered by the Department of Housing and Community Development
in a manner consistent with the restrictions and authorizations
contained in Provision 3 of Item 2240-105-0001 of the Budget Act of
2000, except that any appropriations in that item shall not apply.
The competitive system used by the department shall incorporate
priorities set by the designated local boards and their input as to
the relative merits of submitted applications from within the
designated local board's county in relation to those priorities. In
addition, the funding limitations contained in this section shall not
apply to the appropriation in that budget item.
   (2) The Legislature may, from time to time, amend the provisions
of law related to programs to which funds are, or have been,
allocated pursuant to this subdivision for the purpose of improving
the efficiency and effectiveness of the program, or for the purpose
of furthering the goals of the program.
   (3) With the revenues from bond proceeds issued and sold pursuant
to this part, the Bureau of State Audits shall conduct periodic
audits to ensure that bond proceeds are awarded in a timely fashion
and in a manner consistent with the requirements of this section, and
that awardees of bond proceeds are using funds in compliance with
applicable provisions of this section. The first audit shall be
conducted no later than one year from voter approval of this part.
   (4) In its annual report to the Legislature, the Department of
Housing and Community Development shall report how funds that were
made available pursuant to this subdivision and allocated in the
prior year were expended. The department shall make the report
available to the public on its Internet Web site.
   (b) Eight hundred fifty million dollars ($850,000,000) shall be
deposited in the Regional Planning, Housing, and Infill Incentive
Account, which is hereby created in the fund. Funds in the account
shall be available, upon appropriation by the Legislature, and
subject to such other conditions and criteria as the Legislature may
provide in statute, for the following purposes:
   (1) For infill incentive grants for capital outlay related to
infill housing development and other related infill development,
including, but not limited to, all of the following:
   (A) No more than two hundred million dollars ($200,000,000) for
park creation, development, or rehabilitation to encourage infill
development.
   (B) Water, sewer, or other public infrastructure costs associated
with infill development.
   (C) Transportation improvements related to infill development
projects.
   (D) Traffic mitigation.
   (2) For brownfield cleanup that promotes infill housing
development and other related infill development consistent with
regional and local plans.
   (c) Three hundred million dollars ($300,000,000) to be deposited
in the Transit-Oriented Development Account, which is hereby created
in the fund, for transfer to the Transit-Oriented Development
Implementation Fund, for expenditure, upon appropriation by the
Legislature, pursuant to the Transit-Oriented Development
Implementation Program authorized by Part 13 (commencing with Section
53560).
   (d) Two hundred million dollars ($200,000,000) shall be deposited
in the Housing Urban-Suburban-and-Rural Parks Account, which is
hereby created in the fund. Funds in the account shall be available
upon appropriation by the Legislature for housing-related parks
grants in urban, suburban, and rural areas, subject to the conditions
and criteria that the Legislature may provide in statute.



53545.9.  Of the one hundred million dollars ($100,000,000)
transferred to the Affordable Housing Innovation Fund established in
the State Treasury under subparagraph (F) of paragraph (1) of
subdivision (a) of Section 53545, the following amounts shall be
allocated as follows:
   (a) (1) The department shall make available the amount of fifty
million dollars ($50,000,000) for the Affordable Housing Revolving
Development and Acquisition Program.
   (2) Of the amount made available for the program, twenty-five
million dollars ($25,000,000) shall be made available for the Loan
Fund and twenty-five million dollars ($25,000,000) shall be made
available for the Practitioner Fund.
   (b) The department shall make available the amount of five million
dollars ($5,000,000) for the Construction Liability Insurance Reform
Pilot Program, which is hereby established in the Department of
Housing and Community Development. The purpose of the program is to
promote best practices for residential construction quality control
in housing programs sponsored by the department or the California
Housing Finance Agency, as a means of reducing insurance rates for
condominium developers in this state. Funds shall be made available
in the form of grants for predevelopment costs of condominium
projects funded by the department or the California Housing Finance
Agency that utilize enhanced construction oversight and monitoring
programs and processes, including, but not limited to, video
recording of the construction process, use of quality control
manuals, and increased quality control inspections.
   (c) The department shall make available the amount of thirty-five
million dollars ($35,000,000) for the local housing trust fund
matching grant program established under Section 50843.5. The
department shall make available 50 percent of this amount exclusively
for newly established housing trust funds.
   (1) When awarding grants from the funds allocated under this
subdivision to existing trust funds, the department shall grant
preference to a housing trust fund that agrees to expend more than 65
percent of state funds for the purpose of downpayment assistance to
first-time homebuyers.
   (2) When awarding grants from the funds allocated under this
subdivision to newly established housing trust funds, the department
shall set aside funding, for a period of 36 months from the date
funds are first made available, for newly established housing trust
funds that are in a county with a population of less than 425,000
persons, based on the decennial United States Census for the year
2000.
   (3) (A) Notwithstanding any other provision of law, funds set
aside for newly established housing trust funds shall be available
for encumbrance for 42 months after the date the funds are first made
available and disbursements in liquidation of the encumbrance shall
be made before or during 48 months after the date funds are first
made available.
   (B) Notwithstanding subparagraph (F) of paragraph (1) of
subdivision (a) of Section 53545, any funds not encumbered for newly
established housing trust funds within 42 months after the date the
funds are first made available shall revert to the Self-Help Housing
Fund created by Section 50697.1 and shall be available for the
purposes described in subparagraph (D) of paragraph (1) of
subdivision (a) of Section 53545.
   (d) The department shall make available the amount of ten million
dollars ($10,000,000) for the Innovative Homeownership Program, which
the department shall develop and implement as follows:
   (1) The program shall be designed to increase or maintain
affordable homeownership opportunities for Californians with lower
incomes.
   (2) The department shall adopt guidelines for the program that,
among other things, shall maximize the number of units assisted,
limit the expenditure of funds for administrative costs, and maximize
the leverage of public and private financing sources.
   (3) The guidelines adopted by the department shall provide for the
issuance of a notice of funding availability soliciting competitive
proposals for the use of funds consistent with those guidelines and
with subparagraph (F) of paragraph (1) of subdivision (a) of Section
53545.
   (4) The guidelines adopted by the department shall not be subject
to the requirements of Chapter 6.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code.
   (5) The department shall include within the annual report required
under Section 50408 a detailed summary and description of the manner
in which funds made available under this subdivision were expended
during the previous year and a statement regarding the manner in
which those expenditures meet the intent of the Legislature and the
voters that funds from the Innovative Housing Fund be expended in
support of innovative, cost-saving approaches to creating or
preserving affordable housing.



53545.12.  For the purposes of the grant program established in
Section 53545.13, the following definitions apply:
   (a) "Capital improvement project" means the construction,
rehabilitation, demolition, relocation, preservation, acquisition, or
other physical improvement of a capital asset, as defined in
subdivision (a) of Section 16727 of the Government Code, that is an
integral part of, or necessary to facilitate the development of, a
qualified infill project or qualified infill area. Capital
improvement projects that may be funded under the grant program
established by this act include, but are not limited to, those
related to all of the following:
   (1) The creation, development, or rehabilitation of parks or open
space.
   (2) Water, sewer, or other utility service improvements.
   (3) Streets and roads, parking structures, or transit linkages and
facilities, including, but not limited to, related access plazas or
pathways, or bus and transit shelters.
   (4) Facilities that support pedestrian or bicycle transit.
   (5) Traffic mitigation.
   (6) Qualifying infill project or qualifying infill area site
preparation or demolition.
   (7) Sidewalk or streetscape improvements, including, but not
limited to, the reconstruction or resurfacing of sidewalks and
streets or the installation of lighting, signage, or other related
amenities.
   (b) "Department" means the Department of Housing and Community
Development.
   (c) "Eligible applicant" means any of, or any combination of, the
following:
   (1) A nonprofit or for-profit developer of a qualifying infill
project.
   (2) A city, county, city and county, public housing authority, or
redevelopment agency that has jurisdiction over a qualifying infill
area.
   (3) (A) A city, county, city and county, public housing authority,
or redevelopment agency that has jurisdiction over a qualifying
infill area and applies for funding jointly with an "owners'
association," as defined in Section 36614.5 of the Streets and
Highways Code, for a business or property improvement district that
includes the qualifying infill area.
   (B) Prior to receiving funding, but after being awarded a grant,
the joint applicants described in subparagraph (A) shall submit to
the department documentation from the local permitting authority
demonstrating that the actual number of permitted housing units
associated with the qualifying project is equal to or greater than
the number of housing units in the grant application.
   (d) "Qualifying infill area" means a contiguous area located
within an urbanized area (1) that has been previously developed, or
where at least 75 percent of the perimeter of the area adjoins
parcels that are developed with urban uses, and (2) in which at least
one development application has been approved or is pending approval
for a residential or mixed-use residential project that meets the
definition and criteria in this section for a qualified infill
project.
   (e) (1) "Qualifying infill project" means a residential or
mixed-use residential project located within an urbanized area on a
site that has been previously developed, or on a vacant site where at
least 75 percent of the perimeter of the site adjoins parcels that
are developed with urban uses.
   (2) A property is adjoining the side of a project site if the
property is separated from the project site only by an improved
public right-of-way.
   (f) "Urbanized area" means an incorporated city or an urbanized
area or urban cluster as defined by the United States Census Bureau.
For unincorporated areas outside of an urban area or urban cluster,
the area must be within a designated urban service area that is
designated in the local general plan for urban development and is
served by the public sewer and water.
   (g) "Urban uses" mean any residential, commercial, industrial,
public institutional, transit or transportation passenger facility,
or retail use, or any combination of those uses.



53545.13.  (a) The Infill Incentive Grant Program of 2007 is hereby
established to be administered by the department.
   (b) Upon appropriation of funds by the Legislature for the purpose
of implementing paragraph (1) of subdivision (b) of Section 53545,
the department shall establish and administer a competitive grant
program to allocate those funds to selected capital improvement
projects that are an integral part of, or necessary to facilitate the
development of, a qualifying infill project or a qualifying infill
area.
   (c) A qualifying infill project or qualifying infill area for
which a capital improvement project grant may be awarded shall meet
all of the following conditions:
   (1) Be located in a city, county, or city and county, in which the
general plan of the city, county, or city and county, has an adopted
housing element that has been found by the department, pursuant to
Section 65585 of the Government Code, to be in compliance with the
requirements of Article 10.6 (commencing with Section 65580) of
Chapter 3 of Division 1 of Title 7 of the Government Code.
   (2) Include not less than 15 percent of affordable units, as
follows:
   (A) For projects that contain both rental and ownership units,
units of either or both product types may be included in the
calculation of the affordability criteria.
   (B) (i) To the extent included in a project grant application, for
the purpose of calculating the percentage of affordable units, the
department may consider the entire master development in which the
development seeking grant funding is included.
   (ii) Where applicable, an applicant may include a replacement
housing plan to ensure that dwelling units housing persons and
families of low or moderate income are not removed from the low- and
moderate-income housing market. Residential units to be replaced may
not be counted toward meeting the affordability threshold required
for eligibility for funding under this section.
   (C) For the purposes of this subdivision, "affordable unit" means
a unit that is made available at an affordable rent, as defined in
Section 50053, to a household earning no more than 60 percent of the
area median income or at an affordable housing cost, as defined in
Section 50052.5, to a household earning no more than 120 percent of
the area median income. Rental units shall be subject to a recorded
covenant that ensures affordability for at least 55 years. Ownership
units shall initially be sold to and occupied by a qualified
household, and subject to a recorded covenant that includes either a
resale restriction for at least 30 years or equity sharing upon
resale.
   (D) A qualifying infill project or qualifying infill area for
which a disposition and development agreement or other project- or
area-specific agreement between the developer and the local agency
having jurisdiction over the project has been executed on or before
the effective date of the act adding this section, shall be deemed to
meet the affordability requirement of this paragraph (2) if the
agreement includes affordability covenants that subject the project
or area to the production of affordable units for very low, low-, or
moderate-income households.
   (3) Include average residential densities on the parcels to be
developed that are equal to or greater than the densities described
in subparagraph (B) of paragraph (3) of subdivision (c) of Section
65583.2 of the Government Code, except that a project located in a
rural area as defined in Section 50199.21 shall include average
residential densities on the parcels to be developed of at least 10
units per acre.
   (4) Be located in an area designated for mixed-use or residential
development pursuant to one of the following adopted plans:
   (A) A general plan adopted pursuant to Section 65300 of the
Government Code.
   (B) A project area redevelopment plan approved pursuant to Section
33330.
   (C) A regional blueprint plan as defined in the California
Regional Blueprint Planning Program administered by the Business,
Transportation and Housing Agency, or a regional plan as defined in
Section 65060.7 of the Government Code.
   (5) For qualifying infill projects or qualifying infill areas
located in a redevelopment project area, meet the requirements
contained in subdivision (a) of Section 33413.
   (d) In its review and ranking of applications for the award of
capital improvement project grants, the department shall rank the
affected qualifying infill projects and qualifying infill areas based
on the following priorities:
   (1) Project readiness, which shall include all of the following:
   (A) A demonstration that the project or area development can
complete environmental review and secure necessary entitlements from
the local jurisdiction within a reasonable period of time following
the submittal of a grant application.
   (B) A demonstration that the eligible applicant can secure
sufficient funding commitments derived from sources other than this
part for the timely development of a qualifying infill project or
development of a qualifying infill area.
   (C) A demonstration that the project or area development has
sufficient local support to achieve the proposed improvement.
   (2) The depth and duration of the affordability of the housing
proposed for a qualifying infill project or qualifying infill area.
   (3) The extent to which the average residential densities on the
parcels to be developed exceed the density standards contained in
paragraph (3) of subdivision (c).
   (4) The qualifying infill project's or qualifying infill area's
inclusion of, or proximity or accessibility to, a transit station or
major transit stop.
   (5) The proximity of housing to parks, employment or retail
centers, schools, or social services.
   (6) The qualifying infill project or qualifying infill area
location's consistency with an adopted regional blueprint plan or
other adopted regional growth plan intended to foster efficient land
use.
   (e) In allocating funds pursuant to this section, the department,
to the maximum extent feasible, shall ensure a reasonable geographic
distribution of funds.
   (f) Funds awarded pursuant to this section shall supplement, not
supplant, other available funding.
   (g) (1) The department shall adopt guidelines for the operation of
the grant program, including guidelines to ensure the tax-exempt
status of the bonds issued pursuant to this part, and may administer
the program under those guidelines.
   (2) The guidelines shall include provisions for the reversion of
grant awards that are not encumbered within four years of the fiscal
year in which an award was made, and for the recapture of grants
awarded, but for which development of the related housing units has
not progressed in a reasonable period of time from the date of the
grant award, as determined by the department.
   (3) The guidelines shall not be subject to the requirements of
Chapter 3.5 (commencing with Section 11340) of Division 3 of Title 2
of the Government Code.
   (h) For each fiscal year within the duration of the grant program,
the department shall include within the report to the Legislature,
required by Section 50408, information on its activities relating to
the grant program. The report shall include, but is not limited to,
the following information:
   (1) A summary of the projects that received grants under the
program for each fiscal year that grants were awarded.
   (2) The description, location, and estimated date of completion
for each project that received a grant award under the program.
   (3) An update on the status of each project that received a grant
award under the program, and the number of housing units created or
facilitated by the program.
   (i)  Notwithstanding paragraph (3) of subdivision (c), a city of
greater than 100,000 in population in a standard metropolitan
statistical area of less than 2,000,000 in population may petition
the department for, and the department may grant, an exception to the
jurisdiction's classification pursuant to subdivisions (d) to (f),
inclusive, of Section 65583.2 of the Government Code, if the city
believes it is unable to meet the density requirements specified in
paragraph (3) of subdivision (c). The city shall submit the petition
with its application and shall include the reasons why the city
believes the exception is warranted. The city shall provide
information supporting the need for the exception, including, but not
limited to, any limitations that the city may encounter in meeting
the density requirements specified in paragraph (3) of subdivision
(c). Any exception shall be for the purposes of this section only.
This subdivision shall become inoperative on January 1, 2015.




53545.14.  (a) Upon appropriation of funds by the Legislature for
purposes of implementing paragraph (2) of subdivision (b) of Section
53545, the California Pollution Control Financing Authority, in
consultation with the Department of Housing and Community
Development, shall administer loans or grants under the California
Recycle Underutilized Sites (CALReUSE) program established under
Article 9 (commencing with Section 8090) of Division 11 of Title 4 of
the California Code of Regulations, for the purpose of brownfield
cleanup that promotes infill residential and mixed-used development,
consistent with regional and local land use plans.
   (b) For each fiscal year covering the duration of the program, the
authority shall include within its report to the Legislature,
pursuant to Section 44525.7, information on its activities relating
to the program. At a minimum, the report shall include a summary of
the projects that receive loans or grants pursuant to this section
for each fiscal year loans or grants are awarded. The report shall
include the description, location and estimation of completion for
each recipient project. The report shall also include an update on
the status of each project and the number of infill housing units
facilitated by the program.

State Codes and Statutes

Statutes > California > Hsc > 53545-53545.14

HEALTH AND SAFETY CODE
SECTION 53545-53545.14



53545.  The Housing and Emergency Shelter Trust Fund of 2006 is
hereby created in the State Treasury. The Legislature intends that
the proceeds of bonds deposited in the fund shall be used to fund the
housing-related programs described in this chapter over the course
of the next decade. 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) (1) One billion five hundred million dollars ($1,500,000,000)
to be deposited in the Affordable Housing Account, which is hereby
created in the fund. Notwithstanding Section 13340 of the Government
Code, the money in the account shall be continuously appropriated in
accordance with the following schedule:
   (A) (i) Three hundred forty-five million dollars ($345,000,000)
shall be transferred to the Housing Rehabilitation Loan Fund to be
expended for the Multifamily Housing Program authorized by Chapter
6.7 (commencing with Section 50675) of Part 2. The priorities
specified in Section 50675.13 shall apply to the expenditure of funds
pursuant to this clause.
   (ii) Fifty million dollars ($50,000,000) shall be transferred to
the Housing Rehabilitation Loan Fund to be expended under the
Multifamily Housing Program authorized by Chapter 6.7 (commencing
with Section 50675) of Part 2 for housing meeting the definitions in
paragraphs (2) and (3) of subdivision (e) of Section 11139.3 of the
Government Code. The department may provide higher per-unit loan
limits as necessary to achieve affordable housing costs to the target
population. Any funds not encumbered for the purposes of this clause
by July 31, 2011, shall revert for general use in the Multifamily
Housing Program unless the department determines that funds should
revert sooner due to diminished demand.
   (B) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Housing Rehabilitation Loan Fund to be expended
for the Multifamily Housing Program authorized by Chapter 6.7
(commencing with Section 50675) of Part 2, to be used for supportive
housing for individuals and households moving from emergency shelters
or transitional housing or those at risk of homelessness. The
Department of Housing and Community Development shall provide for
higher per-unit loan limits as reasonably necessary to achieve
housing costs affordable to those individuals and households. For
purposes of this subparagraph, "supportive housing" means housing
with no limit on length of stay, that is occupied by the target
population, as defined in subdivision (d) of Section 53260, and that
is linked to onsite or offsite services that assist the tenant to
retain the housing, improve his or her health status, maximize his or
her ability to live, and, when possible, work in the community. The
criteria for selecting projects shall give priority to:
   (i) Supportive housing for people with disabilities who would
otherwise be at high risk of homelessness where the applications
represent collaboration with programs that meet the needs of the
person's disabilities.
   (ii) Projects that demonstrate funding commitments from local
governments for operating subsidies or services funding, or both, for
five years or longer.
   (C) One hundred thirty-five million dollars ($135,000,000) shall
be transferred to the fund created by subdivision (b) of Section
50517.5 to be expended for the programs authorized by Chapter 3.2
(commencing with Section 50517.5) of Part 2.
   (D) Three hundred million dollars ($300,000,000) shall be
transferred to the Self-Help Housing Fund created by Section 50697.1.
These funds shall be available to the Department of Housing and
Community Development, to be expended for the purposes of enabling
households to become or remain homeowners pursuant to the CalHome
Program authorized by Chapter 6 (commencing with Section 50650) of
Part 2, except ten million dollars ($10,000,000) shall be expended
for construction management under the California Self-Help Housing
Program pursuant to subdivision (b) of Section 50696.
   (E) Two hundred million dollars ($200,000,000) shall be
transferred to the Self-Help Housing Fund created by Section 50697.1.
These funds shall be available to the California Housing Finance
Agency, to be expended for the purposes of the California Homebuyer's
Downpayment Assistance Program authorized by Chapter 11 (commencing
with Section 51500) of Part 3. Up to one hundred million dollars
($100,000,000) of these funds may be expended pursuant to subdivision
(b) of Section 51504.
   (F) One hundred million dollars ($100,000,000) shall be
transferred to the Affordable Housing Innovation Fund, which is
hereby created in the State Treasury, to be administered by the
Department of Housing and Community Development. Funds shall be
expended for competitive grants or loans to sponsoring entities that
develop, own, lend, or invest in affordable housing and used to
create pilot programs to demonstrate innovative, cost-saving
approaches to creating or preserving affordable housing. Specific
criteria establishing eligibility for and use of the funds shall be
established in statute as approved by a 2/3 vote of each house of the
Legislature. Any funds not encumbered for the purposes set forth in
this subparagraph within 30 months of availability shall revert to
the Self-Help Housing Fund created by Section 50697.1 and shall be
available for the purposes described in subparagraph (D).
   (G) One hundred twenty-five million dollars ($125,000,000) shall
be transferred to the Building Equity and Growth in Neighborhoods
Fund to be used for the Building Equity and Growth in Neighborhoods
(BEGIN) Program pursuant to Chapter 14.5 (commencing with Section
50860) of Part 1. Any funds not encumbered for the purposes set forth
in this subparagraph by November 17, 2011, shall revert for general
use in the CalHome Program unless the department determines that
funds should revert sooner due to diminished demand.
   (H) Fifty million dollars ($50,000,000) shall be transferred to
the Emergency Housing and Assistance Fund to be distributed in the
form of capital development grants under the Emergency Housing and
Assistance Program authorized by Chapter 11.5 (commencing with
Section 50800) of Part 2 of Division 31. The funds shall be
administered by the Department of Housing and Community Development
in a manner consistent with the restrictions and authorizations
contained in Provision 3 of Item 2240-105-0001 of the Budget Act of
2000, except that any appropriations in that item shall not apply.
The competitive system used by the department shall incorporate
priorities set by the designated local boards and their input as to
the relative merits of submitted applications from within the
designated local board's county in relation to those priorities. In
addition, the funding limitations contained in this section shall not
apply to the appropriation in that budget item.
   (2) The Legislature may, from time to time, amend the provisions
of law related to programs to which funds are, or have been,
allocated pursuant to this subdivision for the purpose of improving
the efficiency and effectiveness of the program, or for the purpose
of furthering the goals of the program.
   (3) With the revenues from bond proceeds issued and sold pursuant
to this part, the Bureau of State Audits shall conduct periodic
audits to ensure that bond proceeds are awarded in a timely fashion
and in a manner consistent with the requirements of this section, and
that awardees of bond proceeds are using funds in compliance with
applicable provisions of this section. The first audit shall be
conducted no later than one year from voter approval of this part.
   (4) In its annual report to the Legislature, the Department of
Housing and Community Development shall report how funds that were
made available pursuant to this subdivision and allocated in the
prior year were expended. The department shall make the report
available to the public on its Internet Web site.
   (b) Eight hundred fifty million dollars ($850,000,000) shall be
deposited in the Regional Planning, Housing, and Infill Incentive
Account, which is hereby created in the fund. Funds in the account
shall be available, upon appropriation by the Legislature, and
subject to such other conditions and criteria as the Legislature may
provide in statute, for the following purposes:
   (1) For infill incentive grants for capital outlay related to
infill housing development and other related infill development,
including, but not limited to, all of the following:
   (A) No more than two hundred million dollars ($200,000,000) for
park creation, development, or rehabilitation to encourage infill
development.
   (B) Water, sewer, or other public infrastructure costs associated
with infill development.
   (C) Transportation improvements related to infill development
projects.
   (D) Traffic mitigation.
   (2) For brownfield cleanup that promotes infill housing
development and other related infill development consistent with
regional and local plans.
   (c) Three hundred million dollars ($300,000,000) to be deposited
in the Transit-Oriented Development Account, which is hereby created
in the fund, for transfer to the Transit-Oriented Development
Implementation Fund, for expenditure, upon appropriation by the
Legislature, pursuant to the Transit-Oriented Development
Implementation Program authorized by Part 13 (commencing with Section
53560).
   (d) Two hundred million dollars ($200,000,000) shall be deposited
in the Housing Urban-Suburban-and-Rural Parks Account, which is
hereby created in the fund. Funds in the account shall be available
upon appropriation by the Legislature for housing-related parks
grants in urban, suburban, and rural areas, subject to the conditions
and criteria that the Legislature may provide in statute.



53545.9.  Of the one hundred million dollars ($100,000,000)
transferred to the Affordable Housing Innovation Fund established in
the State Treasury under subparagraph (F) of paragraph (1) of
subdivision (a) of Section 53545, the following amounts shall be
allocated as follows:
   (a) (1) The department shall make available the amount of fifty
million dollars ($50,000,000) for the Affordable Housing Revolving
Development and Acquisition Program.
   (2) Of the amount made available for the program, twenty-five
million dollars ($25,000,000) shall be made available for the Loan
Fund and twenty-five million dollars ($25,000,000) shall be made
available for the Practitioner Fund.
   (b) The department shall make available the amount of five million
dollars ($5,000,000) for the Construction Liability Insurance Reform
Pilot Program, which is hereby established in the Department of
Housing and Community Development. The purpose of the program is to
promote best practices for residential construction quality control
in housing programs sponsored by the department or the California
Housing Finance Agency, as a means of reducing insurance rates for
condominium developers in this state. Funds shall be made available
in the form of grants for predevelopment costs of condominium
projects funded by the department or the California Housing Finance
Agency that utilize enhanced construction oversight and monitoring
programs and processes, including, but not limited to, video
recording of the construction process, use of quality control
manuals, and increased quality control inspections.
   (c) The department shall make available the amount of thirty-five
million dollars ($35,000,000) for the local housing trust fund
matching grant program established under Section 50843.5. The
department shall make available 50 percent of this amount exclusively
for newly established housing trust funds.
   (1) When awarding grants from the funds allocated under this
subdivision to existing trust funds, the department shall grant
preference to a housing trust fund that agrees to expend more than 65
percent of state funds for the purpose of downpayment assistance to
first-time homebuyers.
   (2) When awarding grants from the funds allocated under this
subdivision to newly established housing trust funds, the department
shall set aside funding, for a period of 36 months from the date
funds are first made available, for newly established housing trust
funds that are in a county with a population of less than 425,000
persons, based on the decennial United States Census for the year
2000.
   (3) (A) Notwithstanding any other provision of law, funds set
aside for newly established housing trust funds shall be available
for encumbrance for 42 months after the date the funds are first made
available and disbursements in liquidation of the encumbrance shall
be made before or during 48 months after the date funds are first
made available.
   (B) Notwithstanding subparagraph (F) of paragraph (1) of
subdivision (a) of Section 53545, any funds not encumbered for newly
established housing trust funds within 42 months after the date the
funds are first made available shall revert to the Self-Help Housing
Fund created by Section 50697.1 and shall be available for the
purposes described in subparagraph (D) of paragraph (1) of
subdivision (a) of Section 53545.
   (d) The department shall make available the amount of ten million
dollars ($10,000,000) for the Innovative Homeownership Program, which
the department shall develop and implement as follows:
   (1) The program shall be designed to increase or maintain
affordable homeownership opportunities for Californians with lower
incomes.
   (2) The department shall adopt guidelines for the program that,
among other things, shall maximize the number of units assisted,
limit the expenditure of funds for administrative costs, and maximize
the leverage of public and private financing sources.
   (3) The guidelines adopted by the department shall provide for the
issuance of a notice of funding availability soliciting competitive
proposals for the use of funds consistent with those guidelines and
with subparagraph (F) of paragraph (1) of subdivision (a) of Section
53545.
   (4) The guidelines adopted by the department shall not be subject
to the requirements of Chapter 6.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code.
   (5) The department shall include within the annual report required
under Section 50408 a detailed summary and description of the manner
in which funds made available under this subdivision were expended
during the previous year and a statement regarding the manner in
which those expenditures meet the intent of the Legislature and the
voters that funds from the Innovative Housing Fund be expended in
support of innovative, cost-saving approaches to creating or
preserving affordable housing.



53545.12.  For the purposes of the grant program established in
Section 53545.13, the following definitions apply:
   (a) "Capital improvement project" means the construction,
rehabilitation, demolition, relocation, preservation, acquisition, or
other physical improvement of a capital asset, as defined in
subdivision (a) of Section 16727 of the Government Code, that is an
integral part of, or necessary to facilitate the development of, a
qualified infill project or qualified infill area. Capital
improvement projects that may be funded under the grant program
established by this act include, but are not limited to, those
related to all of the following:
   (1) The creation, development, or rehabilitation of parks or open
space.
   (2) Water, sewer, or other utility service improvements.
   (3) Streets and roads, parking structures, or transit linkages and
facilities, including, but not limited to, related access plazas or
pathways, or bus and transit shelters.
   (4) Facilities that support pedestrian or bicycle transit.
   (5) Traffic mitigation.
   (6) Qualifying infill project or qualifying infill area site
preparation or demolition.
   (7) Sidewalk or streetscape improvements, including, but not
limited to, the reconstruction or resurfacing of sidewalks and
streets or the installation of lighting, signage, or other related
amenities.
   (b) "Department" means the Department of Housing and Community
Development.
   (c) "Eligible applicant" means any of, or any combination of, the
following:
   (1) A nonprofit or for-profit developer of a qualifying infill
project.
   (2) A city, county, city and county, public housing authority, or
redevelopment agency that has jurisdiction over a qualifying infill
area.
   (3) (A) A city, county, city and county, public housing authority,
or redevelopment agency that has jurisdiction over a qualifying
infill area and applies for funding jointly with an "owners'
association," as defined in Section 36614.5 of the Streets and
Highways Code, for a business or property improvement district that
includes the qualifying infill area.
   (B) Prior to receiving funding, but after being awarded a grant,
the joint applicants described in subparagraph (A) shall submit to
the department documentation from the local permitting authority
demonstrating that the actual number of permitted housing units
associated with the qualifying project is equal to or greater than
the number of housing units in the grant application.
   (d) "Qualifying infill area" means a contiguous area located
within an urbanized area (1) that has been previously developed, or
where at least 75 percent of the perimeter of the area adjoins
parcels that are developed with urban uses, and (2) in which at least
one development application has been approved or is pending approval
for a residential or mixed-use residential project that meets the
definition and criteria in this section for a qualified infill
project.
   (e) (1) "Qualifying infill project" means a residential or
mixed-use residential project located within an urbanized area on a
site that has been previously developed, or on a vacant site where at
least 75 percent of the perimeter of the site adjoins parcels that
are developed with urban uses.
   (2) A property is adjoining the side of a project site if the
property is separated from the project site only by an improved
public right-of-way.
   (f) "Urbanized area" means an incorporated city or an urbanized
area or urban cluster as defined by the United States Census Bureau.
For unincorporated areas outside of an urban area or urban cluster,
the area must be within a designated urban service area that is
designated in the local general plan for urban development and is
served by the public sewer and water.
   (g) "Urban uses" mean any residential, commercial, industrial,
public institutional, transit or transportation passenger facility,
or retail use, or any combination of those uses.



53545.13.  (a) The Infill Incentive Grant Program of 2007 is hereby
established to be administered by the department.
   (b) Upon appropriation of funds by the Legislature for the purpose
of implementing paragraph (1) of subdivision (b) of Section 53545,
the department shall establish and administer a competitive grant
program to allocate those funds to selected capital improvement
projects that are an integral part of, or necessary to facilitate the
development of, a qualifying infill project or a qualifying infill
area.
   (c) A qualifying infill project or qualifying infill area for
which a capital improvement project grant may be awarded shall meet
all of the following conditions:
   (1) Be located in a city, county, or city and county, in which the
general plan of the city, county, or city and county, has an adopted
housing element that has been found by the department, pursuant to
Section 65585 of the Government Code, to be in compliance with the
requirements of Article 10.6 (commencing with Section 65580) of
Chapter 3 of Division 1 of Title 7 of the Government Code.
   (2) Include not less than 15 percent of affordable units, as
follows:
   (A) For projects that contain both rental and ownership units,
units of either or both product types may be included in the
calculation of the affordability criteria.
   (B) (i) To the extent included in a project grant application, for
the purpose of calculating the percentage of affordable units, the
department may consider the entire master development in which the
development seeking grant funding is included.
   (ii) Where applicable, an applicant may include a replacement
housing plan to ensure that dwelling units housing persons and
families of low or moderate income are not removed from the low- and
moderate-income housing market. Residential units to be replaced may
not be counted toward meeting the affordability threshold required
for eligibility for funding under this section.
   (C) For the purposes of this subdivision, "affordable unit" means
a unit that is made available at an affordable rent, as defined in
Section 50053, to a household earning no more than 60 percent of the
area median income or at an affordable housing cost, as defined in
Section 50052.5, to a household earning no more than 120 percent of
the area median income. Rental units shall be subject to a recorded
covenant that ensures affordability for at least 55 years. Ownership
units shall initially be sold to and occupied by a qualified
household, and subject to a recorded covenant that includes either a
resale restriction for at least 30 years or equity sharing upon
resale.
   (D) A qualifying infill project or qualifying infill area for
which a disposition and development agreement or other project- or
area-specific agreement between the developer and the local agency
having jurisdiction over the project has been executed on or before
the effective date of the act adding this section, shall be deemed to
meet the affordability requirement of this paragraph (2) if the
agreement includes affordability covenants that subject the project
or area to the production of affordable units for very low, low-, or
moderate-income households.
   (3) Include average residential densities on the parcels to be
developed that are equal to or greater than the densities described
in subparagraph (B) of paragraph (3) of subdivision (c) of Section
65583.2 of the Government Code, except that a project located in a
rural area as defined in Section 50199.21 shall include average
residential densities on the parcels to be developed of at least 10
units per acre.
   (4) Be located in an area designated for mixed-use or residential
development pursuant to one of the following adopted plans:
   (A) A general plan adopted pursuant to Section 65300 of the
Government Code.
   (B) A project area redevelopment plan approved pursuant to Section
33330.
   (C) A regional blueprint plan as defined in the California
Regional Blueprint Planning Program administered by the Business,
Transportation and Housing Agency, or a regional plan as defined in
Section 65060.7 of the Government Code.
   (5) For qualifying infill projects or qualifying infill areas
located in a redevelopment project area, meet the requirements
contained in subdivision (a) of Section 33413.
   (d) In its review and ranking of applications for the award of
capital improvement project grants, the department shall rank the
affected qualifying infill projects and qualifying infill areas based
on the following priorities:
   (1) Project readiness, which shall include all of the following:
   (A) A demonstration that the project or area development can
complete environmental review and secure necessary entitlements from
the local jurisdiction within a reasonable period of time following
the submittal of a grant application.
   (B) A demonstration that the eligible applicant can secure
sufficient funding commitments derived from sources other than this
part for the timely development of a qualifying infill project or
development of a qualifying infill area.
   (C) A demonstration that the project or area development has
sufficient local support to achieve the proposed improvement.
   (2) The depth and duration of the affordability of the housing
proposed for a qualifying infill project or qualifying infill area.
   (3) The extent to which the average residential densities on the
parcels to be developed exceed the density standards contained in
paragraph (3) of subdivision (c).
   (4) The qualifying infill project's or qualifying infill area's
inclusion of, or proximity or accessibility to, a transit station or
major transit stop.
   (5) The proximity of housing to parks, employment or retail
centers, schools, or social services.
   (6) The qualifying infill project or qualifying infill area
location's consistency with an adopted regional blueprint plan or
other adopted regional growth plan intended to foster efficient land
use.
   (e) In allocating funds pursuant to this section, the department,
to the maximum extent feasible, shall ensure a reasonable geographic
distribution of funds.
   (f) Funds awarded pursuant to this section shall supplement, not
supplant, other available funding.
   (g) (1) The department shall adopt guidelines for the operation of
the grant program, including guidelines to ensure the tax-exempt
status of the bonds issued pursuant to this part, and may administer
the program under those guidelines.
   (2) The guidelines shall include provisions for the reversion of
grant awards that are not encumbered within four years of the fiscal
year in which an award was made, and for the recapture of grants
awarded, but for which development of the related housing units has
not progressed in a reasonable period of time from the date of the
grant award, as determined by the department.
   (3) The guidelines shall not be subject to the requirements of
Chapter 3.5 (commencing with Section 11340) of Division 3 of Title 2
of the Government Code.
   (h) For each fiscal year within the duration of the grant program,
the department shall include within the report to the Legislature,
required by Section 50408, information on its activities relating to
the grant program. The report shall include, but is not limited to,
the following information:
   (1) A summary of the projects that received grants under the
program for each fiscal year that grants were awarded.
   (2) The description, location, and estimated date of completion
for each project that received a grant award under the program.
   (3) An update on the status of each project that received a grant
award under the program, and the number of housing units created or
facilitated by the program.
   (i)  Notwithstanding paragraph (3) of subdivision (c), a city of
greater than 100,000 in population in a standard metropolitan
statistical area of less than 2,000,000 in population may petition
the department for, and the department may grant, an exception to the
jurisdiction's classification pursuant to subdivisions (d) to (f),
inclusive, of Section 65583.2 of the Government Code, if the city
believes it is unable to meet the density requirements specified in
paragraph (3) of subdivision (c). The city shall submit the petition
with its application and shall include the reasons why the city
believes the exception is warranted. The city shall provide
information supporting the need for the exception, including, but not
limited to, any limitations that the city may encounter in meeting
the density requirements specified in paragraph (3) of subdivision
(c). Any exception shall be for the purposes of this section only.
This subdivision shall become inoperative on January 1, 2015.




53545.14.  (a) Upon appropriation of funds by the Legislature for
purposes of implementing paragraph (2) of subdivision (b) of Section
53545, the California Pollution Control Financing Authority, in
consultation with the Department of Housing and Community
Development, shall administer loans or grants under the California
Recycle Underutilized Sites (CALReUSE) program established under
Article 9 (commencing with Section 8090) of Division 11 of Title 4 of
the California Code of Regulations, for the purpose of brownfield
cleanup that promotes infill residential and mixed-used development,
consistent with regional and local land use plans.
   (b) For each fiscal year covering the duration of the program, the
authority shall include within its report to the Legislature,
pursuant to Section 44525.7, information on its activities relating
to the program. At a minimum, the report shall include a summary of
the projects that receive loans or grants pursuant to this section
for each fiscal year loans or grants are awarded. The report shall
include the description, location and estimation of completion for
each recipient project. The report shall also include an update on
the status of each project and the number of infill housing units
facilitated by the program.


State Codes and Statutes

State Codes and Statutes

Statutes > California > Hsc > 53545-53545.14

HEALTH AND SAFETY CODE
SECTION 53545-53545.14



53545.  The Housing and Emergency Shelter Trust Fund of 2006 is
hereby created in the State Treasury. The Legislature intends that
the proceeds of bonds deposited in the fund shall be used to fund the
housing-related programs described in this chapter over the course
of the next decade. 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) (1) One billion five hundred million dollars ($1,500,000,000)
to be deposited in the Affordable Housing Account, which is hereby
created in the fund. Notwithstanding Section 13340 of the Government
Code, the money in the account shall be continuously appropriated in
accordance with the following schedule:
   (A) (i) Three hundred forty-five million dollars ($345,000,000)
shall be transferred to the Housing Rehabilitation Loan Fund to be
expended for the Multifamily Housing Program authorized by Chapter
6.7 (commencing with Section 50675) of Part 2. The priorities
specified in Section 50675.13 shall apply to the expenditure of funds
pursuant to this clause.
   (ii) Fifty million dollars ($50,000,000) shall be transferred to
the Housing Rehabilitation Loan Fund to be expended under the
Multifamily Housing Program authorized by Chapter 6.7 (commencing
with Section 50675) of Part 2 for housing meeting the definitions in
paragraphs (2) and (3) of subdivision (e) of Section 11139.3 of the
Government Code. The department may provide higher per-unit loan
limits as necessary to achieve affordable housing costs to the target
population. Any funds not encumbered for the purposes of this clause
by July 31, 2011, shall revert for general use in the Multifamily
Housing Program unless the department determines that funds should
revert sooner due to diminished demand.
   (B) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Housing Rehabilitation Loan Fund to be expended
for the Multifamily Housing Program authorized by Chapter 6.7
(commencing with Section 50675) of Part 2, to be used for supportive
housing for individuals and households moving from emergency shelters
or transitional housing or those at risk of homelessness. The
Department of Housing and Community Development shall provide for
higher per-unit loan limits as reasonably necessary to achieve
housing costs affordable to those individuals and households. For
purposes of this subparagraph, "supportive housing" means housing
with no limit on length of stay, that is occupied by the target
population, as defined in subdivision (d) of Section 53260, and that
is linked to onsite or offsite services that assist the tenant to
retain the housing, improve his or her health status, maximize his or
her ability to live, and, when possible, work in the community. The
criteria for selecting projects shall give priority to:
   (i) Supportive housing for people with disabilities who would
otherwise be at high risk of homelessness where the applications
represent collaboration with programs that meet the needs of the
person's disabilities.
   (ii) Projects that demonstrate funding commitments from local
governments for operating subsidies or services funding, or both, for
five years or longer.
   (C) One hundred thirty-five million dollars ($135,000,000) shall
be transferred to the fund created by subdivision (b) of Section
50517.5 to be expended for the programs authorized by Chapter 3.2
(commencing with Section 50517.5) of Part 2.
   (D) Three hundred million dollars ($300,000,000) shall be
transferred to the Self-Help Housing Fund created by Section 50697.1.
These funds shall be available to the Department of Housing and
Community Development, to be expended for the purposes of enabling
households to become or remain homeowners pursuant to the CalHome
Program authorized by Chapter 6 (commencing with Section 50650) of
Part 2, except ten million dollars ($10,000,000) shall be expended
for construction management under the California Self-Help Housing
Program pursuant to subdivision (b) of Section 50696.
   (E) Two hundred million dollars ($200,000,000) shall be
transferred to the Self-Help Housing Fund created by Section 50697.1.
These funds shall be available to the California Housing Finance
Agency, to be expended for the purposes of the California Homebuyer's
Downpayment Assistance Program authorized by Chapter 11 (commencing
with Section 51500) of Part 3. Up to one hundred million dollars
($100,000,000) of these funds may be expended pursuant to subdivision
(b) of Section 51504.
   (F) One hundred million dollars ($100,000,000) shall be
transferred to the Affordable Housing Innovation Fund, which is
hereby created in the State Treasury, to be administered by the
Department of Housing and Community Development. Funds shall be
expended for competitive grants or loans to sponsoring entities that
develop, own, lend, or invest in affordable housing and used to
create pilot programs to demonstrate innovative, cost-saving
approaches to creating or preserving affordable housing. Specific
criteria establishing eligibility for and use of the funds shall be
established in statute as approved by a 2/3 vote of each house of the
Legislature. Any funds not encumbered for the purposes set forth in
this subparagraph within 30 months of availability shall revert to
the Self-Help Housing Fund created by Section 50697.1 and shall be
available for the purposes described in subparagraph (D).
   (G) One hundred twenty-five million dollars ($125,000,000) shall
be transferred to the Building Equity and Growth in Neighborhoods
Fund to be used for the Building Equity and Growth in Neighborhoods
(BEGIN) Program pursuant to Chapter 14.5 (commencing with Section
50860) of Part 1. Any funds not encumbered for the purposes set forth
in this subparagraph by November 17, 2011, shall revert for general
use in the CalHome Program unless the department determines that
funds should revert sooner due to diminished demand.
   (H) Fifty million dollars ($50,000,000) shall be transferred to
the Emergency Housing and Assistance Fund to be distributed in the
form of capital development grants under the Emergency Housing and
Assistance Program authorized by Chapter 11.5 (commencing with
Section 50800) of Part 2 of Division 31. The funds shall be
administered by the Department of Housing and Community Development
in a manner consistent with the restrictions and authorizations
contained in Provision 3 of Item 2240-105-0001 of the Budget Act of
2000, except that any appropriations in that item shall not apply.
The competitive system used by the department shall incorporate
priorities set by the designated local boards and their input as to
the relative merits of submitted applications from within the
designated local board's county in relation to those priorities. In
addition, the funding limitations contained in this section shall not
apply to the appropriation in that budget item.
   (2) The Legislature may, from time to time, amend the provisions
of law related to programs to which funds are, or have been,
allocated pursuant to this subdivision for the purpose of improving
the efficiency and effectiveness of the program, or for the purpose
of furthering the goals of the program.
   (3) With the revenues from bond proceeds issued and sold pursuant
to this part, the Bureau of State Audits shall conduct periodic
audits to ensure that bond proceeds are awarded in a timely fashion
and in a manner consistent with the requirements of this section, and
that awardees of bond proceeds are using funds in compliance with
applicable provisions of this section. The first audit shall be
conducted no later than one year from voter approval of this part.
   (4) In its annual report to the Legislature, the Department of
Housing and Community Development shall report how funds that were
made available pursuant to this subdivision and allocated in the
prior year were expended. The department shall make the report
available to the public on its Internet Web site.
   (b) Eight hundred fifty million dollars ($850,000,000) shall be
deposited in the Regional Planning, Housing, and Infill Incentive
Account, which is hereby created in the fund. Funds in the account
shall be available, upon appropriation by the Legislature, and
subject to such other conditions and criteria as the Legislature may
provide in statute, for the following purposes:
   (1) For infill incentive grants for capital outlay related to
infill housing development and other related infill development,
including, but not limited to, all of the following:
   (A) No more than two hundred million dollars ($200,000,000) for
park creation, development, or rehabilitation to encourage infill
development.
   (B) Water, sewer, or other public infrastructure costs associated
with infill development.
   (C) Transportation improvements related to infill development
projects.
   (D) Traffic mitigation.
   (2) For brownfield cleanup that promotes infill housing
development and other related infill development consistent with
regional and local plans.
   (c) Three hundred million dollars ($300,000,000) to be deposited
in the Transit-Oriented Development Account, which is hereby created
in the fund, for transfer to the Transit-Oriented Development
Implementation Fund, for expenditure, upon appropriation by the
Legislature, pursuant to the Transit-Oriented Development
Implementation Program authorized by Part 13 (commencing with Section
53560).
   (d) Two hundred million dollars ($200,000,000) shall be deposited
in the Housing Urban-Suburban-and-Rural Parks Account, which is
hereby created in the fund. Funds in the account shall be available
upon appropriation by the Legislature for housing-related parks
grants in urban, suburban, and rural areas, subject to the conditions
and criteria that the Legislature may provide in statute.



53545.9.  Of the one hundred million dollars ($100,000,000)
transferred to the Affordable Housing Innovation Fund established in
the State Treasury under subparagraph (F) of paragraph (1) of
subdivision (a) of Section 53545, the following amounts shall be
allocated as follows:
   (a) (1) The department shall make available the amount of fifty
million dollars ($50,000,000) for the Affordable Housing Revolving
Development and Acquisition Program.
   (2) Of the amount made available for the program, twenty-five
million dollars ($25,000,000) shall be made available for the Loan
Fund and twenty-five million dollars ($25,000,000) shall be made
available for the Practitioner Fund.
   (b) The department shall make available the amount of five million
dollars ($5,000,000) for the Construction Liability Insurance Reform
Pilot Program, which is hereby established in the Department of
Housing and Community Development. The purpose of the program is to
promote best practices for residential construction quality control
in housing programs sponsored by the department or the California
Housing Finance Agency, as a means of reducing insurance rates for
condominium developers in this state. Funds shall be made available
in the form of grants for predevelopment costs of condominium
projects funded by the department or the California Housing Finance
Agency that utilize enhanced construction oversight and monitoring
programs and processes, including, but not limited to, video
recording of the construction process, use of quality control
manuals, and increased quality control inspections.
   (c) The department shall make available the amount of thirty-five
million dollars ($35,000,000) for the local housing trust fund
matching grant program established under Section 50843.5. The
department shall make available 50 percent of this amount exclusively
for newly established housing trust funds.
   (1) When awarding grants from the funds allocated under this
subdivision to existing trust funds, the department shall grant
preference to a housing trust fund that agrees to expend more than 65
percent of state funds for the purpose of downpayment assistance to
first-time homebuyers.
   (2) When awarding grants from the funds allocated under this
subdivision to newly established housing trust funds, the department
shall set aside funding, for a period of 36 months from the date
funds are first made available, for newly established housing trust
funds that are in a county with a population of less than 425,000
persons, based on the decennial United States Census for the year
2000.
   (3) (A) Notwithstanding any other provision of law, funds set
aside for newly established housing trust funds shall be available
for encumbrance for 42 months after the date the funds are first made
available and disbursements in liquidation of the encumbrance shall
be made before or during 48 months after the date funds are first
made available.
   (B) Notwithstanding subparagraph (F) of paragraph (1) of
subdivision (a) of Section 53545, any funds not encumbered for newly
established housing trust funds within 42 months after the date the
funds are first made available shall revert to the Self-Help Housing
Fund created by Section 50697.1 and shall be available for the
purposes described in subparagraph (D) of paragraph (1) of
subdivision (a) of Section 53545.
   (d) The department shall make available the amount of ten million
dollars ($10,000,000) for the Innovative Homeownership Program, which
the department shall develop and implement as follows:
   (1) The program shall be designed to increase or maintain
affordable homeownership opportunities for Californians with lower
incomes.
   (2) The department shall adopt guidelines for the program that,
among other things, shall maximize the number of units assisted,
limit the expenditure of funds for administrative costs, and maximize
the leverage of public and private financing sources.
   (3) The guidelines adopted by the department shall provide for the
issuance of a notice of funding availability soliciting competitive
proposals for the use of funds consistent with those guidelines and
with subparagraph (F) of paragraph (1) of subdivision (a) of Section
53545.
   (4) The guidelines adopted by the department shall not be subject
to the requirements of Chapter 6.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code.
   (5) The department shall include within the annual report required
under Section 50408 a detailed summary and description of the manner
in which funds made available under this subdivision were expended
during the previous year and a statement regarding the manner in
which those expenditures meet the intent of the Legislature and the
voters that funds from the Innovative Housing Fund be expended in
support of innovative, cost-saving approaches to creating or
preserving affordable housing.



53545.12.  For the purposes of the grant program established in
Section 53545.13, the following definitions apply:
   (a) "Capital improvement project" means the construction,
rehabilitation, demolition, relocation, preservation, acquisition, or
other physical improvement of a capital asset, as defined in
subdivision (a) of Section 16727 of the Government Code, that is an
integral part of, or necessary to facilitate the development of, a
qualified infill project or qualified infill area. Capital
improvement projects that may be funded under the grant program
established by this act include, but are not limited to, those
related to all of the following:
   (1) The creation, development, or rehabilitation of parks or open
space.
   (2) Water, sewer, or other utility service improvements.
   (3) Streets and roads, parking structures, or transit linkages and
facilities, including, but not limited to, related access plazas or
pathways, or bus and transit shelters.
   (4) Facilities that support pedestrian or bicycle transit.
   (5) Traffic mitigation.
   (6) Qualifying infill project or qualifying infill area site
preparation or demolition.
   (7) Sidewalk or streetscape improvements, including, but not
limited to, the reconstruction or resurfacing of sidewalks and
streets or the installation of lighting, signage, or other related
amenities.
   (b) "Department" means the Department of Housing and Community
Development.
   (c) "Eligible applicant" means any of, or any combination of, the
following:
   (1) A nonprofit or for-profit developer of a qualifying infill
project.
   (2) A city, county, city and county, public housing authority, or
redevelopment agency that has jurisdiction over a qualifying infill
area.
   (3) (A) A city, county, city and county, public housing authority,
or redevelopment agency that has jurisdiction over a qualifying
infill area and applies for funding jointly with an "owners'
association," as defined in Section 36614.5 of the Streets and
Highways Code, for a business or property improvement district that
includes the qualifying infill area.
   (B) Prior to receiving funding, but after being awarded a grant,
the joint applicants described in subparagraph (A) shall submit to
the department documentation from the local permitting authority
demonstrating that the actual number of permitted housing units
associated with the qualifying project is equal to or greater than
the number of housing units in the grant application.
   (d) "Qualifying infill area" means a contiguous area located
within an urbanized area (1) that has been previously developed, or
where at least 75 percent of the perimeter of the area adjoins
parcels that are developed with urban uses, and (2) in which at least
one development application has been approved or is pending approval
for a residential or mixed-use residential project that meets the
definition and criteria in this section for a qualified infill
project.
   (e) (1) "Qualifying infill project" means a residential or
mixed-use residential project located within an urbanized area on a
site that has been previously developed, or on a vacant site where at
least 75 percent of the perimeter of the site adjoins parcels that
are developed with urban uses.
   (2) A property is adjoining the side of a project site if the
property is separated from the project site only by an improved
public right-of-way.
   (f) "Urbanized area" means an incorporated city or an urbanized
area or urban cluster as defined by the United States Census Bureau.
For unincorporated areas outside of an urban area or urban cluster,
the area must be within a designated urban service area that is
designated in the local general plan for urban development and is
served by the public sewer and water.
   (g) "Urban uses" mean any residential, commercial, industrial,
public institutional, transit or transportation passenger facility,
or retail use, or any combination of those uses.



53545.13.  (a) The Infill Incentive Grant Program of 2007 is hereby
established to be administered by the department.
   (b) Upon appropriation of funds by the Legislature for the purpose
of implementing paragraph (1) of subdivision (b) of Section 53545,
the department shall establish and administer a competitive grant
program to allocate those funds to selected capital improvement
projects that are an integral part of, or necessary to facilitate the
development of, a qualifying infill project or a qualifying infill
area.
   (c) A qualifying infill project or qualifying infill area for
which a capital improvement project grant may be awarded shall meet
all of the following conditions:
   (1) Be located in a city, county, or city and county, in which the
general plan of the city, county, or city and county, has an adopted
housing element that has been found by the department, pursuant to
Section 65585 of the Government Code, to be in compliance with the
requirements of Article 10.6 (commencing with Section 65580) of
Chapter 3 of Division 1 of Title 7 of the Government Code.
   (2) Include not less than 15 percent of affordable units, as
follows:
   (A) For projects that contain both rental and ownership units,
units of either or both product types may be included in the
calculation of the affordability criteria.
   (B) (i) To the extent included in a project grant application, for
the purpose of calculating the percentage of affordable units, the
department may consider the entire master development in which the
development seeking grant funding is included.
   (ii) Where applicable, an applicant may include a replacement
housing plan to ensure that dwelling units housing persons and
families of low or moderate income are not removed from the low- and
moderate-income housing market. Residential units to be replaced may
not be counted toward meeting the affordability threshold required
for eligibility for funding under this section.
   (C) For the purposes of this subdivision, "affordable unit" means
a unit that is made available at an affordable rent, as defined in
Section 50053, to a household earning no more than 60 percent of the
area median income or at an affordable housing cost, as defined in
Section 50052.5, to a household earning no more than 120 percent of
the area median income. Rental units shall be subject to a recorded
covenant that ensures affordability for at least 55 years. Ownership
units shall initially be sold to and occupied by a qualified
household, and subject to a recorded covenant that includes either a
resale restriction for at least 30 years or equity sharing upon
resale.
   (D) A qualifying infill project or qualifying infill area for
which a disposition and development agreement or other project- or
area-specific agreement between the developer and the local agency
having jurisdiction over the project has been executed on or before
the effective date of the act adding this section, shall be deemed to
meet the affordability requirement of this paragraph (2) if the
agreement includes affordability covenants that subject the project
or area to the production of affordable units for very low, low-, or
moderate-income households.
   (3) Include average residential densities on the parcels to be
developed that are equal to or greater than the densities described
in subparagraph (B) of paragraph (3) of subdivision (c) of Section
65583.2 of the Government Code, except that a project located in a
rural area as defined in Section 50199.21 shall include average
residential densities on the parcels to be developed of at least 10
units per acre.
   (4) Be located in an area designated for mixed-use or residential
development pursuant to one of the following adopted plans:
   (A) A general plan adopted pursuant to Section 65300 of the
Government Code.
   (B) A project area redevelopment plan approved pursuant to Section
33330.
   (C) A regional blueprint plan as defined in the California
Regional Blueprint Planning Program administered by the Business,
Transportation and Housing Agency, or a regional plan as defined in
Section 65060.7 of the Government Code.
   (5) For qualifying infill projects or qualifying infill areas
located in a redevelopment project area, meet the requirements
contained in subdivision (a) of Section 33413.
   (d) In its review and ranking of applications for the award of
capital improvement project grants, the department shall rank the
affected qualifying infill projects and qualifying infill areas based
on the following priorities:
   (1) Project readiness, which shall include all of the following:
   (A) A demonstration that the project or area development can
complete environmental review and secure necessary entitlements from
the local jurisdiction within a reasonable period of time following
the submittal of a grant application.
   (B) A demonstration that the eligible applicant can secure
sufficient funding commitments derived from sources other than this
part for the timely development of a qualifying infill project or
development of a qualifying infill area.
   (C) A demonstration that the project or area development has
sufficient local support to achieve the proposed improvement.
   (2) The depth and duration of the affordability of the housing
proposed for a qualifying infill project or qualifying infill area.
   (3) The extent to which the average residential densities on the
parcels to be developed exceed the density standards contained in
paragraph (3) of subdivision (c).
   (4) The qualifying infill project's or qualifying infill area's
inclusion of, or proximity or accessibility to, a transit station or
major transit stop.
   (5) The proximity of housing to parks, employment or retail
centers, schools, or social services.
   (6) The qualifying infill project or qualifying infill area
location's consistency with an adopted regional blueprint plan or
other adopted regional growth plan intended to foster efficient land
use.
   (e) In allocating funds pursuant to this section, the department,
to the maximum extent feasible, shall ensure a reasonable geographic
distribution of funds.
   (f) Funds awarded pursuant to this section shall supplement, not
supplant, other available funding.
   (g) (1) The department shall adopt guidelines for the operation of
the grant program, including guidelines to ensure the tax-exempt
status of the bonds issued pursuant to this part, and may administer
the program under those guidelines.
   (2) The guidelines shall include provisions for the reversion of
grant awards that are not encumbered within four years of the fiscal
year in which an award was made, and for the recapture of grants
awarded, but for which development of the related housing units has
not progressed in a reasonable period of time from the date of the
grant award, as determined by the department.
   (3) The guidelines shall not be subject to the requirements of
Chapter 3.5 (commencing with Section 11340) of Division 3 of Title 2
of the Government Code.
   (h) For each fiscal year within the duration of the grant program,
the department shall include within the report to the Legislature,
required by Section 50408, information on its activities relating to
the grant program. The report shall include, but is not limited to,
the following information:
   (1) A summary of the projects that received grants under the
program for each fiscal year that grants were awarded.
   (2) The description, location, and estimated date of completion
for each project that received a grant award under the program.
   (3) An update on the status of each project that received a grant
award under the program, and the number of housing units created or
facilitated by the program.
   (i)  Notwithstanding paragraph (3) of subdivision (c), a city of
greater than 100,000 in population in a standard metropolitan
statistical area of less than 2,000,000 in population may petition
the department for, and the department may grant, an exception to the
jurisdiction's classification pursuant to subdivisions (d) to (f),
inclusive, of Section 65583.2 of the Government Code, if the city
believes it is unable to meet the density requirements specified in
paragraph (3) of subdivision (c). The city shall submit the petition
with its application and shall include the reasons why the city
believes the exception is warranted. The city shall provide
information supporting the need for the exception, including, but not
limited to, any limitations that the city may encounter in meeting
the density requirements specified in paragraph (3) of subdivision
(c). Any exception shall be for the purposes of this section only.
This subdivision shall become inoperative on January 1, 2015.




53545.14.  (a) Upon appropriation of funds by the Legislature for
purposes of implementing paragraph (2) of subdivision (b) of Section
53545, the California Pollution Control Financing Authority, in
consultation with the Department of Housing and Community
Development, shall administer loans or grants under the California
Recycle Underutilized Sites (CALReUSE) program established under
Article 9 (commencing with Section 8090) of Division 11 of Title 4 of
the California Code of Regulations, for the purpose of brownfield
cleanup that promotes infill residential and mixed-used development,
consistent with regional and local land use plans.
   (b) For each fiscal year covering the duration of the program, the
authority shall include within its report to the Legislature,
pursuant to Section 44525.7, information on its activities relating
to the program. At a minimum, the report shall include a summary of
the projects that receive loans or grants pursuant to this section
for each fiscal year loans or grants are awarded. The report shall
include the description, location and estimation of completion for
each recipient project. The report shall also include an update on
the status of each project and the number of infill housing units
facilitated by the program.