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PROPOSED AMENDMENTS FLOATED TO ALLOCATE $100 MILLION FOR JOBS/ HOUSING INCENTIVE PROGRAM Negotiations have begun over how to allocate discussions are that Senator Burton is the author of $100 million earmarked for a Jobs-Housing Ira- the bond bill and that the way the bond is written, if provement Account by the $2.1 billion Housing no bill is passed during the 2002 Session, then the Bond that was signed by the Governor last month funds will revert to the Multifamily Housing Pro- and will appear on the November 2002 statewide gram, ballot. SB 423 (Torlakson) has been identified as the vehicle to determine the allocation method, The Proposed Amendments: Given those serving as a "trailer bill" to the Housing Bond (SB parameters, amendments are being floated, and may 1227, Burton). Provisions in the Housing Bond appear in the bill over the next week or so, which would require that these funds revert to the Multi- propose to allocate the $100 million in the following family Housing Program if no trailer bill is enacted way: to provide the allocation method. $25 million shall be used to provide pro- The $100 million is intended to redress a situa- rated grants to cities and counties that qualified for lion that occurred several months ago when $100 funds from the Jobs-Housing Balance Incentive million in 2001-02 state funds dedicated to local Grant Program during the 2001 calendar year. The government housing incentives was redirected to grant amounts shall be determined as a per-unit help the state meet its looming budget deficit. The incentive weighted for high, medium, and Iow program, which was intended to offer incentives to employment demand areas. The grants may be used local governments that issued housing permits for any local capital outlay project that benefits the during calendar year 2001, had elicited over 200 community. qualified applications from local governments, totaling $88 million, Restoration of the funds $75 million shall be allocated under a new through the Housing Bond would help the state keep Workforce Housing Reward Program, which establishes faith with those local agencies that responded, per-unit awards for Iow and very Iow-income units subject to final land use approvals on or after In initial discussions, the League advocated for January 1, 2003, The units must have affordability first allocating $88 million of the funds to those restrictions of 55 years for rental units, and owner- local governments that qualified for the awards ship units for a still undetermined period. Housing during 2001, and then to discuss potential changes element compliance is required within a specified to the criteria with for a new program with the timeframe. The grants may be used for any local remaining $12 million. In other words, the Legisla- capital outlay project that benefits the community. ture should keep the original deal that was made Ten million of this amount is earmarked for "bonus with those local governments that qualified under grants" to any community that permits housing the rules established by the state. However, it does under this new program, and was eligible for awards not appear that this will fully occur, under the prior Jobs-Housing Balance Incentive Grant Program. Senator Burton and a number of housing advo- cacy organizations, who were not enamored by the What Do You Think? -- Communities that criteria in the old program, are insisting that only a qualified under the terms of the prior program may percentage of the allocation go out to,jurisdictions feel that a 25 cents on the dollar approach may who originally qualified for the awards. Under this violate the spirit and letter of the state-local under- approach, the bulk of the $100 million would be standing reached previously. Others may take a allocated to a new program that offers incentives only for more targeted forms of Iow and very Iow Continued onPage 9 income housing. Key leverage points in these PAGE 8/PRIORITY FOCUS Visit the League's Official Web Site--www. cacities.org