Section § 53560

Explanation

This law establishes the Transit-Oriented Development Implementation Program to support building affordable housing and infrastructure near transit stations in California. The program is managed by the Department of Housing and Community Development, providing support for cities, counties, transit agencies, tribal applicants, and developers.

The department can create additional guidelines to manage the program, focusing on long-term affordability and prioritizing projects based on several criteria: first, projects with a high percentage of units for lower-income households; second, projects enhancing travel efficiency that need extra funding; and third, those ready to begin construction.

They may also assess how publicly owned land can be used to support these projects, aiming to maximize public benefits and cut development costs.

(a)CA Health and Safety Code § 53560(a) There is hereby established the Transit-Oriented Development Implementation Program, to be administered by the Department of Housing and Community Development, to provide local assistance to cities, counties, cities and counties, transit agencies, eligible tribal applicants as defined in subdivision (b) of Section 50651, and developers for the purpose of supporting the development of higher density vehicle miles traveled-efficient affordable housing or related infrastructure, including projects within close proximity to transit stations or projects that could increase public transit ridership.
(b)CA Health and Safety Code § 53560(b) The department may adopt additional guidelines to administer this part. Guidelines adopted pursuant to this subdivision 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)CA Health and Safety Code § 53560(c) The guidelines in subdivision (b) shall emphasize the importance of long-term affordability. Prioritization among affordable housing projects shall be based on all of the following:
(1)CA Health and Safety Code § 53560(c)(1) Affordability, with highest priority given to projects that include a greater percentage of units restricted to lower income households, as defined in Section 50079.5.
(2)CA Health and Safety Code § 53560(c)(2) Affordable housing projects that result in improved vehicle miles traveled efficiency with committed state or federal funding in need of gap funding to begin construction.
(3)CA Health and Safety Code § 53560(c)(3) Affordable housing projects that demonstrate project readiness, as determined by the department.
(d)CA Health and Safety Code § 53560(d) The guidelines in subdivision (b) may evaluate how publicly owned land, including state and local surplus properties, can be prioritized or leveraged to support affordable housing or related infrastructure projects eligible for funding pursuant to this section, with the goal of maximizing public benefit and reducing overall development costs.

Section § 53561

Explanation

The Transit-Oriented Development Implementation Fund is a fund created in California's State Treasury to support transit-oriented development projects. This fund collects money from two main sources: money that the state legislature allocates for it, and any other funds the department receives from other sources. Additionally, any profits, like interest or dividends, from investments of this fund will also go back into the fund.

(a)CA Health and Safety Code § 53561(a) There is hereby created in the State Treasury the Transit-Oriented Development Implementation Fund.
(b)CA Health and Safety Code § 53561(b) All interest, dividends, and pecuniary gains from investments or deposits of moneys in the fund shall accrue to the fund, notwithstanding Section 16305.7 of the Government Code. There shall be paid into the fund both of the following:
(1)CA Health and Safety Code § 53561(b)(1) Any moneys appropriated and made available by the Legislature for the purposes of the fund.
(2)CA Health and Safety Code § 53561(b)(2) Any other moneys that may be made available to the department for the purposes of this part from any other source.

Section § 53562

Explanation

This law section discusses how funds can be provided to help develop affordable housing that reduces vehicle miles traveled (VMT). Grants can be given to cities, counties, eligible tribes, or transit agencies to build infrastructure needed for such housing projects. The funding prioritizes projects in line with certain environmental standards.

Loans, either repayable or forgivable, can also support the construction of these types of housing. Only projects that set aside a certain percentage of units as affordable for low-income families over a long period (at least 55 years) are eligible. The rule allows flexibility for mixed-use projects and ensures alignment with local sustainability plans. Other criteria provided by the department must also be met.

For rental housing projects, funding can be coordinated with existing multifamily housing programs, and the application process is competitive. For owner-occupied housing, coordination aligns with the CalHome Program. Decisions on fund allocation are at the department's discretion, ensuring compliance with preset requirements. Infrastructure funded under this statute includes necessary enhancements like roads, utilities, and improvements that boost pedestrian and bicycle access.

(a)CA Health and Safety Code § 53562(a) To the extent that funds are available, the department may make grants to cities, counties, cities and counties, eligible tribal applicants as defined in subdivision (b) of Section 50651, or transit agencies for the provision of infrastructure necessary for the development of higher density vehicle miles traveled-efficient affordable housing or related infrastructure project. Any award of program funds as a grant shall be made pursuant to (1) the priority order set forth in paragraph (1) of subdivision (c) of Section 21080.44 of the Public Resources Code and (2) considerations, including, but not limited to, the discretionary considerations set forth in paragraph (2) of subdivision (c) of Section 21080.44 of the Public Resources Code. Any award may be made either through a competitive or over-the-counter basis.
(b)CA Health and Safety Code § 53562(b) To the extent that funds are available, the department may make repayable loans or forgivable loans for the development and construction of vehicle miles traveled-efficient affordable housing. Any award of repayable loans or forgivable loans shall be made pursuant to (1) the priority order set forth in paragraph (1) of subdivision (c) of Section 21080.44 of the Public Resources Code and (2) considerations, including, but not limited to, the discretionary considerations set forth in paragraph (2) of subdivision (c) of Section 21080.44 of the Public Resources Code.
(c)CA Health and Safety Code § 53562(c) For vehicle miles traveled-efficient affordable housing projects, to be eligible for a grant pursuant to subdivision (a) or a repayable loan or forgivable loan pursuant to subdivision (b), the housing development project shall meet all of the following:
(1)CA Health and Safety Code § 53562(c)(1) At least 20 percent of the units in the proposed development shall be made available at an affordable rent or at an affordable housing cost to persons of very low or low income for at least 55 years. The project shall be subject to an affordability requirement under which not less than 20 percent of the total units shall be restricted to lower income households, as defined in Section 50079.5, for a period of not less than 55 years. If the project is subject to any other public funding, regulatory agreement, or financial assistance that imposes an affordability requirement that exceeds 20 percent of the total units, then the project shall comply with the requirements associated with that funding source.
(2)CA Health and Safety Code § 53562(c)(2) A housing development project may include a mixed-use development consisting of residential and nonresidential uses.
(3)CA Health and Safety Code § 53562(c)(3) Meet minimum density requirements, as established by the department.
(4)CA Health and Safety Code § 53562(c)(4) If applicable, demonstrate consistency with the applicable region’s sustainable communities strategy adopted pursuant to Section 65080 of the Government Code or alternative planning strategy pursuant to Section 65080 of the Government Code.
(5)CA Health and Safety Code § 53562(c)(5) Meet any other threshold requirement established by the department.
(d)CA Health and Safety Code § 53562(d) With respect to grants made pursuant to subdivision (a) or repayable loans or forgivable loans pursuant to subdivision (b) for the development of rental housing, the department may do any or a combination of the following:
(1)CA Health and Safety Code § 53562(d)(1) Make program funds available at the same time it makes funds, if any, available under the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).
(2)CA Health and Safety Code § 53562(d)(2) Rate and rank applications in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2), except that the department may establish additional point categories for the purposes of rating and ranking applications that seek funding pursuant to this subdivision in addition to those used in the Multifamily Housing Program.
(3)CA Health and Safety Code § 53562(d)(3) Administer funds in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2). However, in furtherance of the purposes of the Transit-Oriented Development Implementation Program, the department may alternatively accept applications on an over-the-counter basis and confirm compliance with threshold requirements in order to make awards of Transit-Oriented Development Implementation Program funds.
(e)Copy CA Health and Safety Code § 53562(e)
(1)Copy CA Health and Safety Code § 53562(e)(1) With respect to loans for the development of owner-occupied housing, the department shall do all of the following:
(A)CA Health and Safety Code § 53562(e)(1)(A) Make funds available at the same time it makes funds, if any, available under the CalHome Program (Chapter 6 (commencing with Section 50650) of Part 2).
(B)CA Health and Safety Code § 53562(e)(1)(B) Rate and rank applications in a manner consistent with the CalHome Program (Chapter 6 (commencing with Section 50650) of Part 2), except that the department may establish additional point categories for the purposes of rating and ranking applications that seek funding pursuant to this subdivision in addition to those used in the CalHome Program.
(C)CA Health and Safety Code § 53562(e)(1)(C) Administer funds in a manner consistent with the CalHome Program (Chapter 6 (commencing with Section 50650) of Part 2).
(2)CA Health and Safety Code § 53562(e)(2) Notwithstanding paragraph (1), for the purposes of the program established pursuant to Section 21080.44 of the Public Resources Code, the department shall ensure that administration of the CalHome Program (Chapter 6 (commencing with Section 50650) of Part 2) aligns with the affordability objectives, eligible uses, availability of grants or loans, and timing requirements of the Transit-Oriented Development Implementation Program.
(f)CA Health and Safety Code § 53562(f) With respect to any moneys appropriated or allocated for the purposes of this part, the department shall determine the amounts, if any, to be made available for each of the purposes described in subdivisions (a) to (e), inclusive.
(g)CA Health and Safety Code § 53562(g) Only applications meeting the applicable threshold requirements of subdivisions (a) to (e), inclusive, shall be eligible to receive funds pursuant to this part.
(h)CA Health and Safety Code § 53562(h) As used in this part, “infrastructure” may include any or a combination of paragraphs (1) to (3), inclusive.
(1)CA Health and Safety Code § 53562(h)(1) Capital improvements required by a city, county, city and county, eligible tribal applicant as defined in subdivision (b) of Section 50651, transit agency, or special district as a condition for the development of the affordable housing, including but not limited to, sewer or water system upgrades, streets, construction of drainage basins, utility access, connection or relocation, and noise mitigation.
(2)CA Health and Safety Code § 53562(h)(2) Capital improvements that clearly and substantially enhance public pedestrian or bicycle access from one or more specifically identified housing developments within the areas identified in paragraph (1) of subdivision (c) of Section 21080.44 of the Public Resources Code, including, but not limited to, pedestrian walkways, plazas, or mini-parks, signal lights, streetscape improvements, security enhancements, bicycle lanes, intelligent transportation, and information systems.
(3)CA Health and Safety Code § 53562(h)(3) Capital improvements for the construction, rehabilitation, as defined in Section 50096, including improvements and repairs made to a residential structure acquired for the purpose of preserving its affordability, acquisition, or other physical improvement that is an integral part or necessary to facilitate the development of the housing development.

Section § 53564

Explanation

This section explains that the department in charge can use up to 5% of the allocated funds for their administrative costs related to certain programs. Additionally, the department is allowed to manage these programs following guidelines that don't have to adhere to some usual administrative rules set by the Government Code.

(a)CA Health and Safety Code § 53564(a) The department may use up to 5 percent of the funds appropriated for the purposes of this part for its costs in administering the programs authorized by this part.
(b)CA Health and Safety Code § 53564(b) The department may administer the programs pursuant to guidelines that 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.

Section § 53565

Explanation

This law allows certain funds originally set aside in previous Budget Acts for housing-related purposes to be used until June 30, 2017. These funds are tied to the Regional Planning, Housing, and Infill Incentive Account.

The California Department of Housing is responsible for setting performance-based milestones that must be met for the continued use of these funds. They will update guidelines with these new milestones to potentially extend fund disbursement timeframes.

The department will assess each project individually to decide if they qualify for time extensions based on these updated milestones.

(a)CA Health and Safety Code § 53565(a) Notwithstanding any other law, funds appropriated for deposit into the Regional Planning, Housing, and Infill Incentive Account in the Housing and Emergency Shelter Trust Fund of 2006 by Item 2240-101-6069 of the Budget Act of 2007, as reappropriated by Item 2240-492 of the Budget Act of 2010; Item 2240-101-6069 of the Budget Act of 2008, as reappropriated by Section 129 of the Budget Act of 2009, as reappropriated by Item 2240-492 of the Budget Act of 2010; Item 2240-101-6069 of the Budget Act of 2009, as reappropriated by Item 2240-492 of the Budget Act of 2010; and subdivision (a) of Section 1 of Chapter 39 of the Statutes of 2008, as reappropriated by Item 2240-492 of the Budget Act of 2010; shall be made available for liquidation of encumbrances until June 30, 2017, subject to performance-based milestones to be established by the department.
(b)CA Health and Safety Code § 53565(b) The department shall amend the guidelines with revised performance-based milestones to approve disbursement extensions.
(c)CA Health and Safety Code § 53565(c) The department shall evaluate the revised performance-based milestones on a project by project basis to determine which projects should be granted time extensions within the timeframe specified.

Section § 53566

Explanation

This law outlines the terms and usage of loans within certain California housing programs. For rental housing, loan terms must align with the Multifamily Housing Program’s requirements. For owner-occupied housing, terms should match the CalHome Program's standards. Money from loan repayments is used to fund these housing programs further. The law allows the department to set aside funds (up to 1.5% of appropriated funds) as a 'default reserve' to prevent loan defaults or foreclosure in rental housing developments. The department has discretion over its use and funds used will increase the loan amount owed. Funds are to be deposited in specific accounts for continued appropriation. This regulation took effect on January 1, 2022.

(a)CA Health and Safety Code § 53566(a) For any loans issued pursuant to this part, both of the following shall apply:
(1)CA Health and Safety Code § 53566(a)(1) Loan terms for rental housing shall be consistent with Section 50675.6 and any other requirements concerning loan terms in the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).
(2)CA Health and Safety Code § 53566(a)(2) Loan terms for owner-occupied housing shall be consistent with requirements concerning loan terms in the CalHome Program (Chapter 6 (commencing with Section 50650) of Part 2).
(b)CA Health and Safety Code § 53566(b) All moneys received by the department in repayment of loans made pursuant to this part, including interest and payments in advance in lieu of future interest, shall be deposited in the Housing Rehabilitation Loan Fund established by Section 50661, and, notwithstanding Section 13340 of the Government Code, are continuously appropriated to the department for the purposes of the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2), except as otherwise provided in this section.
(c)CA Health and Safety Code § 53566(c) The department may designate an amount not to exceed 1.5 percent of funds appropriated for use pursuant to this section for the purposes of curing or averting a default on the terms of any loan or other obligation by the recipient of financial assistance, or bidding at any foreclosure sale where the default or foreclosure sale would jeopardize the department’s security in the rental housing development assisted pursuant to this part.  The funds so designated shall be known as the “default reserve.”
(d)CA Health and Safety Code § 53566(d) The department may use default reserve funds made available pursuant to this section to repair or maintain any rental housing development assisted pursuant to this part that was acquired to protect the department’s security interest.
(e)CA Health and Safety Code § 53566(e) The payment or advance of funds by the department pursuant to this section shall be exclusively within the department’s discretion, and no person shall be deemed to have any entitlement to the payment or advance of those funds.  The amount of any funds expended by the department for the purposes of curing or averting a default shall be added to the loan amount secured by the rental housing development and shall be payable to the department upon demand.
(f)CA Health and Safety Code § 53566(f) All moneys set aside for the default reserve by the department pursuant to this section shall be deposited in the Transit-Oriented Development Implementation Fund established by Section 53561, and, notwithstanding Section 13340 of the Government Code, are continuously appropriated to the department for the purposes of the default reserve set forth above in this section.
(g)CA Health and Safety Code § 53566(g) This section shall become operative on January 1, 2022.

Section § 53567

Explanation

This law applies to Los Angeles and addresses situations where subsidized housing units are leased to unhoused individuals who later are found to not meet income requirements. Importantly, if a property owner or manager corrects this within 24 months and certain conditions are met, the Department of Housing and Urban Development won't penalize them.

Key conditions include verifying tenant income and working with local housing authorities to find affordable housing for those who don't meet income requirements. During a 24-month period, tenants who self-certify their income at no more than 30% of the area median and are verified as under 50% may comply with income requirements, allowing rent adjustments if needed. This section remains active until July 31, 2025, or until related waivers expire, whichever is later.

(a)Copy CA Health and Safety Code § 53567(a)
(1)Copy CA Health and Safety Code § 53567(a)(1) In the City and County of Los Angeles, where the federal Department of Housing and Urban Development has granted an authority, as defined in Section 34203, a waiver effective August 17, 2024, to allow household income verifications to occur after a lease contract is signed for unhoused populations seeking entry into projects pursuant to or in connection with Section 5.110 of Title 24 of the Code of Federal Regulations, if an owner or a management agent leases a subsidized unit to an unhoused person and subsequently learns and verifies that the unhoused person does not meet applicable income requirements, then the department shall not take any negative actions against the owner or management agent if both of the following conditions are met:
(A)CA Health and Safety Code § 53567(a)(1)(A) The owner or management agent has cured the noncompliance within 24 months of discovery of the violation.
(B)CA Health and Safety Code § 53567(a)(1)(B) The local housing authority and continuum of care have developed and posted on their respective internet websites a plan describing how the local housing authority and continuum of care will coordinate with the owner or management agent to move tenants that do not meet applicable income requirements into affordable housing where the tenant is eligible for occupancy within 24 months of discovery of the violation. Income ineligible tenants shall retain their unhoused targeting eligibility.
(2)CA Health and Safety Code § 53567(a)(2) For purposes of this subdivision, “negative actions” include, but are not limited to, both of the following:
(A)CA Health and Safety Code § 53567(a)(2)(A) Issuing negative points on a current or future application.
(B)CA Health and Safety Code § 53567(a)(2)(B) Imposing a financial penalty.
(b)CA Health and Safety Code § 53567(b) If an agreement between the owner or management agent and the authority or the department restricts a unit to a tenant earning no more than 30 percent of the area median income, the tenant shall be deemed to satisfy the income requirements of this program during the 24-month period described in paragraph (1) of subdivision (a) if all of the following conditions are met:
(1)CA Health and Safety Code § 53567(b)(1) The tenant experienced homelessness prior to moving into the unit. For purposes of this paragraph, “homelessness” has the same meaning as “homeless,” as that term is defined in Section 578.3 of Title 24 of the Code of Federal Regulations.
(2)CA Health and Safety Code § 53567(b)(2) The tenant self-certified household income at no more than 30 percent of the area median income.
(3)CA Health and Safety Code § 53567(b)(3) A third-party verification shows that the tenant has household income of no more than 50 percent of the area median income, unless the tenant is otherwise eligible pursuant to federal income eligibility requirements.
(4)CA Health and Safety Code § 53567(b)(4) The tenant’s income certification is fully verified in accordance with the program rules within 90 days of the date the tenant took possession of the unit.
(5)CA Health and Safety Code § 53567(b)(5) At least 50 percent of the assisted units restricted to 30 percent area median income are occupied by verified, income-eligible households.
(6)CA Health and Safety Code § 53567(b)(6) The issuing housing authority and continuum of care, in coordination with other public agencies, coordinate with an owner or a management agent and move a tenant found to have a household income of more than 50 percent of the area median income following third-party verification described in paragraph (3) within 24 months of discovery of the violation to an affordable housing unit for which the tenant is eligible without reliance upon the same waiver described in subdivision (a). Income ineligible tenants shall retain their unhoused targeting eligibility.
(c)Copy CA Health and Safety Code § 53567(c)
(1)Copy CA Health and Safety Code § 53567(c)(1) This section does not modify any other eligibility requirements attached to assistance provided by the Department of Housing and Community Development.
(2)CA Health and Safety Code § 53567(c)(2) Tenant self-certified date of birth shall be accepted so long as the agreement between the department and the owner does not impose age-based demographic targeting requirements.
(3)CA Health and Safety Code § 53567(c)(3) If the conditions described in subdivision (b) are met, absent any rent setting methodology from subsidy programs, a tenant whose adjusted income at move-in exceeded 30 percent area median income shall have an effective rent limit for their unit be redesignated to 50 percent of area median income or, if the tenant’s verified income is higher than 50 percent of area median income, an effective rent limit for their unit be redesignated to an area median income level commensurate with the income level.
(4)CA Health and Safety Code § 53567(c)(4) Owner or management agents shall discontinue use of the waiver as described in subdivision (a) in the event that more than 50 percent of the assisted units restricted to 30 percent area median income are occupied by households with adjusted incomes at move-in over 30 percent area median income.
(d)CA Health and Safety Code § 53567(d) This section shall become inoperative on July 31, 2025, or the final expiration date of a waiver as described in subdivision (a), whichever is later, and, as of January 1 of the following year, is repealed.

Section § 53568

Explanation

The Office of Land Use and Climate Innovation must hire the University of California to study how projects in the Transit-Oriented Development (TOD) Implementation Program are reducing vehicle miles traveled. The study will look into various methods used to cut down car travel, the types of projects using them, and will calculate the costs and impact of these measures, including per capita reductions.

The study will also examine how these methods work with other strategies to decrease vehicle miles traveled. The results are to be formalized in a report to the California Legislature by July 1, 2031.

(a)CA Health and Safety Code § 53568(a) The Office of Land Use and Climate Innovation shall, subject to appropriation, and, with the agreement of the Regents of the University of California, contract with the University of California to conduct an evaluation of the mitigation measures used by projects participating in the TOD Implementation Program to reduce vehicle miles traveled. The evaluation shall summarize the different categories of mitigation measures utilized across regions, the types of projects implementing those measures, the estimated annual vehicle miles traveled reductions achieved, total costs to construct or implement the mitigation measures, project-level funding contributions, cost per vehicle miles traveled reduced, and per capita vehicle miles traveled reduction.
(b)CA Health and Safety Code § 53568(b) The evaluation shall also assess how the mitigation measures used under the Transit-Oriented Development Implementation Program complement other vehicle miles traveled mitigation options and strategies.
(c)CA Health and Safety Code § 53568(c) The Office of Land Use and Climate Innovation shall complete this evaluation and submit, in compliance with Section 9795 of the Government Code, a report to the Legislature on or before July 1, 2031.