Housing and Emergency Shelter Trust Fund of 2006: reversion of funds.

The Housing and Emergency Shelter Trust Fund Act of 2006 authorizes the issuance of bonds in the amount of $2,850,000,000 pursuant to the State General Obligation Bond Law. One billion five hundred million dollars of proceeds from the sale of these bonds is required to be deposited in the Affordable Housing Account and a specified amount of money in the account are to be transferred to the Housing Rehabilitation Loan Fund, expended under the Multifamily Housing Program, and the Building Equity and Growth in Neighborhoods Fund, to be used for the Building Equity and Growth in Neighborhoods Program. Existing law requires that any funds not encumbered for these purposes within 30 months of availability revert for general use in the Multifamily Housing Program and CalHome Program, respectively. This bill would require that funds transferred to the Housing Rehabilitation Loan Fund that are not encumbered by July 31, 2011, revert for general use unless the Department of Housing and Community Development determines that the funds should revert sooner due to diminished demand. The bill would also require that funds transferred to the Building Equity and Growth in Neighborhoods Fund that are not encumbered by November 17, 2011, revert for general use unless the department determines that the funds should revert sooner due to diminished demand. This bill would declare that it is to take effect immediately as an urgency statute.