Housing.

(1) Existing law creates the National Mortgage Special Deposit Fund in the State Treasury, which is continuously appropriated and subject to allocation by the Department of Finance, for the receipt of moneys from the National Mortgage Settlement. This bill, in accordance with a specified California appellate court decision, would provide for $331,044,084 to be transferred from the General Fund to the National Mortgage Special Deposit Fund. The bill would state the intent of the Legislature to create a trust to manage these funds, as specified. The bill would specify purposes to which these funds will be applied. The bill would appropriate $100,000 from the General Fund to the Department of Finance to study the most effective way to establish and manage a trust for those purposes. (2) The Planning and Zoning Law requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. That law requires the Department of Housing and Community Development (HCD) to determine whether the housing element is in substantial compliance with specified provisions of that law. That law also requires HCD to notify a city, county, or city and county, and authorizes HCD to notify the office of the Attorney General, that the city, county, or city and county is in violation of state law if HCD finds that the housing element or an amendment to the housing element does not substantially comply with specified provisions of the Planning and Zoning Law, or that the local government has taken action or failed to act in violation of specified provisions of law. That law, prior to the Attorney General bringing any suit for a violation of certain of those aforementioned provisions and seeking available remedies, requires HCD to offer the jurisdiction the opportunity for 2 meetings in person or via telephone to discuss the violation, and to provide the jurisdiction written findings regarding the violation. That law provides that, in any action or special proceeding brought by the Attorney General relating to housing element compliance pursuant to the above-described provision relating to HCD providing notice of specified violations of law, the Attorney General is required, upon a finding of the court that the housing element does not substantially comply with the requirements of specified provisions of the Planning and Zoning Law, to request that the court issue an order or judgment directing the jurisdiction to bring its housing element into substantial compliance with those requirements. That law requires the court to retain jurisdiction to ensure that its order or judgment is carried out, and provides that once a court determines that the housing element substantially complies with those provisions, it is required to have the same force and effect, for all purposes, as HCD's determination that the housing element substantially complies with those provisions. That law provides that the court is authorized to take certain actions against a jurisdiction that failed to comply with the order or judgment, including imposing fees, as specified, and ordering remedies available pursuant to a provision that authorizes the appointment of a receiver under which the agent of the court is authorized to be appointed with all the powers necessary to bring the jurisdiction's housing element into substantial compliance, as specified. That act provides that the aforementioned provisions do not limit a court's discretion to apply any and all remedies in an action or special proceeding filed by a party other than the state for a violation of specified provisions of law. This bill, instead, would provide that, in any action or special proceeding brought by the Attorney General relating to housing element compliance pursuant to a notice or referral under the provision relating to HCD providing notice of specified violations of law, the Attorney General is authorized, upon a finding of the court that the housing element does not substantially comply with the requirements of specified provisions of the Planning and Zoning Law, to request that the court issue an order or judgment directing the jurisdiction to bring its housing element into substantial compliance with those requirements. The bill would provide that if a court determines that the housing element substantially complies with those provisions, it is required to have the same force and effect, for purposes of eligibility for financial assistance that requires a housing element in substantial compliance and for purposes of specified incentives related to housing element compliance, as HCD's determination that the housing element substantially complies with those provisions. The bill would revise the above-described provision authorizing the agent of the court to be appointed with all the powers necessary to bring the jurisdiction's housing element into compliance, as specified, to provide, instead, that the agent of the court is authorized to take all governmental actions necessary to bring the jurisdiction's housing element into substantial compliance, as specified. The bill would instead provide that those provisions do not limit a court's discretion to apply any and all remedies in such an action or special proceeding. (3) The Planning and Zoning Law also requires the Department of Finance (DOF) to publish on its internet website a list of programs for which a jurisdiction is ineligible if it fails to adopt a housing element that is found by HCD to be in substantial compliance with specified provisions of the Planning and Zoning Law. That law also requires HCD to post on its internet website a list of jurisdictions that have failed to adopt a housing element that has been found by HCD to be in substantial compliance with specified provisions of the Planning and Zoning Law. If a jurisdiction is included on that list, that law requires HCD to notify the jurisdiction upon the first occurrence of its inclusion, and to offer the jurisdiction the opportunity for 2 meetings in person or via telephone to discuss the jurisdiction's failure to adopt a housing element that is found to be in substantial compliance with specified provisions of the Planning and Zoning Law and to provide the jurisdiction written findings regarding that failure. Within 30 days of a jurisdiction both appearing on the list and also having adopted a housing element pursuant to a provision relating to the adoption of a housing element that HCD found to not substantially comply with specified provisions of the Planning and Zoning Law, that law authorizes the jurisdiction to request that HCD review de novo the jurisdiction's housing element, as specified. Within 30 days of receipt of the request, that law requires HCD to issue written findings, as specified. That law, if HCD's written findings state that the jurisdiction's housing element is not in substantial compliance with those requirements, authorizes the jurisdiction to bring an action to superior court to challenge HCD's determination pursuant to a provision relating to a court's review of a final administrative order or decision. That law provides that any action pursuant to those provisions relating to a requested review of HCD's determinations is prohibited from impacting the allocation of funds for any programs identified in the provision described above requiring DOF to publish a list of programs for which a jurisdiction is ineligible if it fails to adopt a housing element that is found by HCD to be in substantial compliance with specified provisions of the Planning and Zoning Law. This bill would, instead, provide that HCD is required to notify a jurisdiction of its inclusion on the list of jurisdictions that have failed to adopt a housing element that has been found by HCD to be in substantial compliance with specified provisions of the Planning and Zoning Law upon the first occurrence of this inclusion, if the jurisdiction has not previously received notice of its inclusion. The bill would limit the jurisdictions that HCD is required to offer the opportunity for 2 meetings in person or via telephone to discuss the jurisdiction's failure and to provide written findings regarding that failure to a jurisdiction that would, on the basis of that inclusion, be denied funding under any program that is listed by DOF as a program for which a jurisdiction is ineligible if it fails to adopt a housing element that is found to be in substantial compliance with specified provisions of the Planning and Zoning Law and under which the jurisdiction previously applied for funding. The bill would limit the jurisdictions that are authorized to request that HCD review de novo the jurisdiction's housing element to those jurisdictions that, on the basis of its inclusion on the list, would be denied funding under any program that is listed by DOF as a program for which a jurisdiction is ineligible if it fails to adopt a housing element that is found to be in substantial compliance with those provisions of the Planning and Zoning Law and under which the jurisdiction previously applied for funding. The bill would extend the time within which HCD is required to issue written findings to 90 days of receipt of a request for review. The bill would remove the specific cross-referenced provision pursuant to which a jurisdiction is authorized to bring an action. The bill would, instead, provide that any action pursuant to the provisions relating to a requested review of HCD's determinations is prohibited from impacting the allocation of funds for jurisdictions not appearing on the list of jurisdictions that have failed to adopt a housing element that has been found by HCD to be in substantial compliance with specified provisions of the Planning and Zoning Law for any programs identified in the provision requiring DOF to publish a list of programs for which a jurisdiction is ineligible if it fails to adopt a housing element that is found by HCD to be in substantial compliance with specified provisions of the Planning and Zoning Law. The bill would provide that the provisions relating to a request for a review of a jurisdiction's inclusion on the list of jurisdictions that have failed to adopt a housing element that has been found by HCD to be in substantial compliance with specified provisions of the Planning and Zoning Law are prohibited from being available to a jurisdiction if a lawsuit has been filed against the jurisdiction pursuant to specified provisions of the Planning and Zoning Law. (4) Existing law establishes the Local Government Planning Support Grants Program and, upon appropriation by the Legislature, requires the Department of Housing and Community Development to allocate $250,000,000 in grants under the program to regions and jurisdictions for technical assistance, preparation and adoption of planning documents, and process improvements to accelerate housing production and facilitate compliance to implement the 6th cycle of the regional housing need assessment. Existing law requires that $125,000,000 of that amount be available to councils of governments, as defined, and other regional entities, including to a central coast multiagency working group, formed as provided and consisting of specified councils of governments and counties. Existing law authorizes a council of governments or other regional entity to request an allocation from that amount until January 21, 2021, by submitting an application that includes specified information. This bill would include the Council of San Benito County Governments as one of the councils of governments included in the central coast multiagency working group, as described above. The bill would also authorize, commencing October 1, 2019, a council of governments or the fiscal agent of a multiagency working group to request up to 25% of funding available to it under the program in advance of requesting those funds, as described above, to develop and accelerate the implementation of the application requirements. The bill would require the department to award funds requested pursuant to these provisions to the relevant council of governments or fiscal agent within 30 days of receiving the request. This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.