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8.A.5 Legislative Bill Action ~jurisdiction could held liable for any accidents that This concept is one that can be very helpful to occurred prior to the_jurisdiction% adoption of an local governments when they approve affordable ordinace regulating Segways, 5taft: Natasha Fooman, housing, Most affordable housing developments are Status: SenApps, Position: Oppose Unless Amended. operated by non-profits who qualify for the "welfare" exemption from paying local property taxes. Local SB 1466 (Aiarcon). Contracts for Labor or service costs, however, do not go. away. This bill, Services. SB 1466 exposes public agencies to civil therefore, seeks to ensure that local governments are and criminal penalties and undermines an agency's able to recover these costs from their ERAF losses. confidence in determining the lowest responsible Given the amount of housing developed pursuant to bidder. This bill implies that any entity that enters local redevelopment funds, CDBG funds, tax credits, into a labor contract for construction or.janitorial and state housing and bond funds, this legislation services, should know if the contract does not provide can be of substantial benefit to local governments sufficient funds to allow the contractor to comply with over the long term. all labor laws and regulations. If an entity enters into a contract that does not provide sufficient funds, SB The two issues the League raises with the bill are: 1466 makes the entity guilty of a misdemeanor and subject to civil penalties. Additionally, SB 1466 1) The precondition that the bill mandates that a establishes a rebuttable presumption that the entity city's housing element be certified by HCD in order to entering into a contract for labor or services does not be eligible for the property tax dollars, The ob. jec- violate the provisions of this bill if the contract lions come from several fronts: (a) This is our own contains comprehensive information about the money we are being allowed to keep; (b) There is no contractor and it's workforce. This rebuttable pre- clearer nexus with a local government's commitment sumption would be extremely difficult for a public on affordable housing, than actually building the agency to successfully argue. Staff: Natasha Fooman, units; and (c) Having a housing element is not Status: SenLbr&lndRel;Hrg-5/8, Position: Oppose. reflective of the actual amount of housing approved in a community, Some local governments have HOUSING AND LAND USE approved elements, but approve little housing; other local governments approve a lot of housing, but are SB 1509 (Dunn), Property Tax Shifts. £xemp- unable to get their elements approved. tions. Affordable Housing. SB 1509 requires local governments to be reimbursed for their property tax We have proposed several approaches to resolving losses for any affordable housing units they approve this issue to the Senator's staff: (a) Remove the on and after January 1, 2003, where the non-profit housing element requirement from the bill; (b) property owner has qualified for a property tax Clarify that if a local government's element is ap- exemption. The money would be shifted back to the proved by a court of law that it is equivalent to one local government from the amount that the local approved by HCD; or (b) Remove the reference to HCD government pays into the Educational Revenue and state simply that the local government has a Augmentation Fund. The bill further requires, as a housing element that is in substantial compliance condition of receiving reimbursement, that the local with the law. .jurisdiction's housing element is determined by the State Department of Housing and Community Devel- 2) We have also asked for a clarification in the opment (HCD) to be in substantial compliance with bill, that if the housing element is referenced in the existing housing element law. bill, the compliance requirement should only apply to Visit the League's Official Web Site--www. cacities.org PRIORITY FOCUS/PAGE 5