2005 California Health and Safety Code Sections 53533-53534 CHAPTER 4. ALLOCATION OF HOUSING BOND REVENUES

53533.  (a) Money deposited in the fund from the sale of bonds
pursuant to this part shall be allocated for expenditure in
accordance with the following schedule:
   (1) Nine hundred ten million dollars ($910,000,000) 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, except for the following:
   (A) Fifty million dollars ($50,000,000) shall be transferred to
the Preservation Opportunity Fund and, notwithstanding Section 13340
of the Government Code, is continuously appropriated without regard
to fiscal years for the preservation of at-risk housing pursuant to
Chapter 5 (commencing with Section 50600) of Part 2.
   (B) Twenty million dollars ($20,000,000) shall be used for
nonresidential space for supportive services, including, but not
limited to, job training, health services, and child care within, or
immediately proximate to, projects to be funded under the Multifamily
Housing Program. This funding shall be in addition to any applicable
per -unit or project loan limits and may be in the form of a grant.
Service providers shall ensure that services are available to project
residents on a priority basis over the general public.
   (C) Twenty-five million dollars ($25,000,000) shall be used for
matching grants to local housing trust funds pursuant to Section
50843.
   (D) Fifteen million dollars ($15,000,000) shall be used for
student housing through the Multifamily Housing Program, subject to
the following provisions:
   (i) The department shall give first priority for projects on land
owned by a University of California or California State University
campus. Second priority shall be given to projects located within one
mile of a University of California or California State University
campus that is suffering from a severe shortage of housing and
limited availability of developable land as determined by the
department. Those determinations shall be set forth in the Notice of
Funding Availability and shall not be subject to the requirements of
Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2 of
the Government Code.
   (ii) All funds shall be matched on a one-to-one basis from private
sources or by the University of California or California State
University. For the purposes of this subparagraph, "University of
California" includes the Hastings College of the Law.
   (iii) Occupancy for the units shall be restricted to students
enrolled on a full-time basis in the University of California or
California State University.
   (iv) Income eligibility pursuant to the Multifamily Housing
Program shall be established by verification of the combined income
of the student and his or her family.
   (v) Any funds not used for this purpose within 24 months of the
date that the funds are made available shall be awarded pursuant to
subdivision (a) for the Downtown Rebound Program as set forth in
paragraph (1) of subdivision (c) of Section 50898.2.
   (E) Any funds not encumbered for the purposes set forth in this
paragraph, except subparagraph (D), within 30 months of availability
shall revert to the Housing Rehabilitation Loan Fund created by
Section 50661 for general use in the Multifamily Housing Program.
   (2) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Emergency Housing and Assistance Fund to be
expended for the Emergency Housing and Assistance Program authorized
by Chapter 11.5 (commencing with Section 50800 of Part 2).
   (3) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Housing Rehabilitation Loan Fund to be expended
for supportive housing projects under the Multifamily Housing
Program authorized by Chapter 6.7 (commencing with Section 50675) of
Part 2, to serve individuals and households moving from emergency
shelters or transitional housing or those at risk of homelessness.
   (4) Two hundred million dollars ($200,000,000) shall be
transferred to the Joe Serna, Jr. Farmworker Housing Grant Fund to be
expended for farmworker housing programs authorized by Chapter 3.2
(commencing with Section 50517.5) of Part 2, except for the
following:
   (A) Twenty-five million dollars ($25,000,000) shall be used for
projects that serve migratory agricultural workers as defined in
subdivision (i) of Section 7602 of Title 25 of the California Code of
Regulations. If, after July 1, 2003, funds remain after the approval
of all feasible applications, the department shall be deemed an
eligible recipient for the purposes of reconstructing migrant centers
operated through the Office of Migrant Services pursuant to Chapter
8.5 (commencing with Section 50710) that would otherwise be scheduled
for closure due to health or safety considerations or are in need of
significant repairs to ensure the health and safety of the
residents. Of the dollars allocated by this subparagraph, the
department shall receive fifteen million dollars ($15,000,000) for
these purposes subject to the following conditions and requirements:
   (i) The amount available to the department as a recipient shall be
limited to ten million seven hundred thousand dollars ($10,700,000)
prior to September 1, 2006. The department may receive up to four
million three hundred thousand dollars ($4,300,000) in additional
funds after that date and prior to July 1, 2007, to the extent that
unencumbered funds are available.
   (ii) The department shall make at least eight million one hundred
fifty-nine thousand dollars ($8,159,000) available for flexible loans
and grants for projects that serve migratory agricultural workers
pursuant to subdivision (a) of Section 50517.10. These funds shall be
available for encumbrance until September 1, 2006.
   (iii) Any funds allocated by this subparagraph remaining
unencumbered on July 1, 2007, shall revert for general use in the Joe
Serna, Jr. Farmworker Housing Grant Program.
   (B) Twenty million dollars ($20,000,000) shall be used for
developments that also provide health services to the residents.
Recipients of these funds shall be required to provide ongoing
monitoring of funded developments to ensure compliance with the
requirements of the Joe Serna, Jr. Farmworker Housing Grant Program.
Projects receiving funds through this allocation shall be ineligible
for funding through the Joe Serna, Jr. Farmworker Housing Grant
Program.
   (C) Except as provided in subparagraph (A) funds not encumbered
for the purposes set forth in this paragraph within 30 months of
availability shall revert for general use in the Joe Serna, Jr.
Farmworker Housing Grant Program.
   (5) Two hundred five million dollars ($205,000,000) shall be
transferred to the Self-Help Housing Fund.  Notwithstanding Section
13340 of the Government Code and Section 50697.1, these funds are
hereby continuously appropriated without regard to fiscal years to
the department to be expended for the purposes of the CalHome Program
authorized by Chapter 6 (commencing with Section 50650) of Part 2,
except for the following:
   (A) Seventy-five million dollars ($75,000,000) 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 4.5 (commencing with Section
50860) of Part 1.
   (B) Five million dollars ($5,000,000) shall be used to provide
grants to cities, counties, cities and counties, and nonprofit
organizations to provide grants for lower income tenants with
disabilities for the purpose of making exterior modifications to
rental housing in order to make that housing accessible to persons
with disabilities. For the purposes of this subparagraph, "exterior
modifications" includes modifications that are made to entryways or
to common areas of the structure or property. The program provided
for under this subparagraph shall not be subject to the requirements
of Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2
of the Government Code.
   (C) 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.
   (D) Any funds not encumbered for the purposes set forth in this
paragraph within 30 months of availability shall revert for general
use in the CalHome Program.
   (6) Five million dollars ($5,000,000) shall be transferred to the
Housing Rehabilitation Loan Fund to be expended for capital
expenditures in support of local code enforcement and compliance
programs. This allocation shall not be subject to the requirements of
Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2 of
the Government Code.  If the moneys allocated pursuant to this
paragraph are not expended within three years after being
transferred, the department may, in its discretion, transfer the
moneys to the Housing Rehabilitation Loan Fund to be expended for the
Multifamily Housing Program.
   (7) Two hundred ninety million dollars ($290,000,000) shall be
transferred to the Self-Help Housing Fund.  Notwithstanding Section
50697.1, these funds are hereby continuously appropriated to the
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, except for the following:
   (A) Fifty million dollars ($50,000,000) shall be transferred to
the School Facilities Fee Assistance Fund as provided by subdivision
(a) of Section 51453 to be used for the Homebuyer Down Payment
Assistance Program of 2002 established by Section 51451.5.
   (B) Eighty-five million dollars ($85,000,000) shall be transferred
to the California Housing Loan Insurance Fund to be used for
purposes of Part 4 (commencing with Section 51600). The agency may
transfer these moneys as often as quarterly in amounts that shall not
exceed the dollar amount of new insurance written by the agency
during the preceding quarter for loans for the purchase of homes made
to owner-occupant borrowers with incomes not exceeding 120 percent
of the area median income, divided by the risk-to-capital ratio
required for the maintenance of satisfactory credit ratings from
nationally recognized credit rating services.
   (C) (i) Twelve million five hundred thousand dollars ($12,500,000)
shall be reserved for downpayment assistance to low-income
first-time home buyers who, as documented to the agency by a
nonprofit organization certified and funded to provide home ownership
counseling by a federally funded national nonprofit corporation, are
purchasing a residence in a community revitalization area targeted
by the nonprofit organization and who has received home ownership
counseling from the nonprofit organization. Community revitalization
areas shall be limited to targeted neighborhoods identified by
qualified nonprofit organizations as those neighborhoods in need of
economic stimulation, renovation, and rehabilitation through efforts
that include increased home ownership opportunities for low-income
families.
   (ii) Effective January 1, 2004, 50 percent of the funds available
pursuant to clause (i) shall be available for downpayment assistance
in an amount not to exceed 6 percent of the home sales price.
   (iii) After 12 months of availability, if more than 50 percent of
the funds set aside pursuant to clause (ii) have been encumbered, the
agency shall discontinue that program and make all remaining funds
available for downpayment assistance pursuant to clause (i). If,
however, less than 50 percent of the funds allocated pursuant to
clause (ii) are encumbered after that 12-month period, the agency
may, at its sole discretion, either make all remaining funds provided
pursuant to clause (i) available for the purpose of clause (ii), or
may continue to implement clause (ii) until all of the funds
allocated for that purpose as of January 1, 2004, have been
encumbered.
   (D) Twenty-five million dollars ($25,000,000) shall be used for
downpayment assistance pursuant to Section 51505. After 18 months of
availability, if the agency determines that the funds set aside
pursuant to this section will not be utilized for purposes of Section
51505, these funds shall be available for the general use of the
agency for the purposes of the California Homebuyer's Downpayment
Assistance Program, but may also continue to be available for the
purposes of Section 51505.
   (E) Funds not utilized for the purposes set forth in subparagraphs
(B) and (C) within 30 months shall revert for general use in the
California Homebuyer's Downpayment Assistance Program.
   (8) One hundred million dollars ($100,000,000) shall be
transferred to the Jobs Housing Improvement Account to be expended as
capital grants to local governments for increasing housing pursuant
to enabling legislation. If the enabling legislation fails to become
law in the 2001-02 Regular Session of the Legislature, the specified
allocation for this program shall be void and the funds shall revert
for general use in the Multifamily Housing Program as specified in
paragraph (1) of subdivision (a).
   (b) No portion of the money allocated pursuant to this section may
be expended for project operating costs, except that this section
does not preclude expenditures for operating costs from reserves
required to be maintained by or on behalf of the project sponsor.
   (c) 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 section for the purpose of improving the
efficiency and effectiveness of the program, or for the purpose of
furthering the goals of the program.
   (d) 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 part, and that
awardees of bond proceeds are using funds in compliance with
applicable provisions of this part.
53534.  (a) The Legislature finds and declares all of the following:
   (1) The projected budget deficit for the 2003-04 fiscal year
represents the largest fiscal imbalance in California history.  This
imbalance necessitates drastic actions not ordinarily contemplated in
usual budget years.
   (2) In order to address the budgetary imbalance it is necessary to
find and cancel General Fund commitments where possible so as to
reduce General Fund obligations.
   (3) The creation of affordable housing is extraordinarily
difficult, necessitating, among other things, the acquisition of
suitable sites, the design and engineering of the facility and
securing multiple sources of private and public financing.  In
addition, affordable housing development also frequently encounters
difficulties in obtaining local governmental approvals.  Because of
these difficulties there are typically long lead-times between the
commitment of funds through the state's housing programs and the
actual final approval of the project, completion of construction, and
disbursement of state funds.  Because of the gap in time between the
award of state funds and final fund disbursement, there is an
opportunity to disencumber fund commitments to ease the state's
present fiscal emergency.
   (4) While these housing projects present an opportunity to recoup
General Fund moneys, the Legislature recognizes that the withdrawal
of state funds may mean the cancellation of projects, the loss of
affordable housing, and the creation of potential liabilities to the
state where costs have been incurred in reliance on the state funding
commitment.  The need to find revenue sources does not supersede the
need for public assistance to facilitate the creation of new housing
opportunities particularly for persons and households of low to
moderate income.
   (5) By definition, housing projects that have already received a
commitment of state funds are further advanced towards completion
than projects that have yet to start the process of seeking or
receiving state housing funds.  The enactment of this part,
therefore, provides an opportunity to meet the multiple goals of
relieving existing financial obligations of the General Fund,
continuing the state support of worthy projects, and avoiding the
potential liabilities where costs have been incurred in reliance on
the state's commitment of funds.  The Legislature finds and declares
that it is appropriate, where possible, to disencumber General Fund
obligations in those areas where the state's need to recoup General
Fund revenues can be balanced by the substitution of other funds
through legal mechanism.
   (6) The Legislature's ability to modify a general obligation bond
program approved by the voters is restricted by the California
Constitution and interpretative case law to those situations where
the modification is consistent with the underlying purpose of the
program and not inconsistent with the express language of the measure
placed before the voters.  For the purposes of this part and the
programs administered by the department thereunder, the Legislature
finds and declares that the project selection criteria for many of
the existing programs have been modified by the bond measure
contained in this part, as approved by the voters.  However, the
project selection criteria for the Joe Serna, Jr. Farmworker Housing
Grant Program (Chapter 3.2 (commencing with Section 50517.5) of Part
2) and the CalHome Program (Chapter 6 (commencing with Section 50650)
of Part 2) have been unmodified by this part.  Therefore, projects
funded through these programs that have previously been determined
eligible and have met the selection criteria would similarly be
eligible and meet the selection criteria for these programs as funded
under this part.
   (7) If the funding for projects previously funded under the Joe
Serna, Jr. Farmworker Housing Grant Program and the CalHome Program
were disencumbered, these projects would be eligible to compete for
funds under the same programs as funded through this part.  However,
the time delays and costs associated by the resubmittal of
applications would render a hardship to the project sponsors and
cause unnecessary delays in project implementation.
   (8) The use of funds approved by the voters through the enactment
of this part to ensure successful completion of projects eligible and
fundable through the Joe Serna, Jr. Farmworker Housing Grant Program
and the CalHome Program that would otherwise be delayed or lost if
the general funding was disencumbered is both necessary and
appropriate, and will facilitate the efficient and effective
implementation of the projects funded through this part and will
further the goals of the respective programs.
   (b) In order to return moneys appropriated in the Budget Acts of
2000 and 2001 to the General Fund to assist in easing the current
fiscal emergency, and to ensure the expeditious completion of
projects that have successfully applied for, and were selected for,
funding during the 2000-01 and 2001-02 fiscal years through the Joe
Serna, Jr. Farmworker Housing Grant Program and CalHome Program, the
department shall do both of the following:
   (1) Disencumber funding commitments for all projects funded
through appropriations in the Budget Acts of 2000 and 2001 for which
funds have not been disbursed as of the effective date of this
section.
   (2) Provide replacement funding to these projects, subject to the
terms and conditions of the prior commitment, through paragraph (4)
and paragraph (5), respectively, of subdivision (a) of Section 53533.
  No additional application shall be required to the affected project
sponsors.
   (c) Because it is the Legislature's intent to avoid the disruption
of existing projects, only those portions of a project's budget that
is eligible for replacement as the construction or acquisition of a
capital asset pursuant to the General Obligation Bond Law (Chapter 4
(commencing with Section 16720) of Part 3 of Division 4 of Title 2 of
the Government Code) shall be disencumbered.