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~A.5 lEAGUE'S PRODUCTION-BASED HOUSING CERTIFICATION Bill SET FOR APRil 14 HEARING The Assembly Local Government Committee they can on affordable housing. It will take a major has set April 14 as the hearing date for AB.2nIl effort by local gove. ~ments to achieve :~)ositive ~, a League-sponsored bill that would changes to housing (Iement law. If your-ity sup- grant regulatory relief from state Department of ported ~ last yeétr, please send a su~port Housing and Community Development (HCD) letter on ~ All other cities are encouraged reviews of local housing elements for those commu- to support this proposal. Sam ole letters are nities which commit to hit a targeted production available on the Leaaue's website level of affordable housing~ Cities are strongly urged to send letters of 2. Pack your bags. Plan to attend the Assembly Local Government Committee and support on the measure, and to consider attending convey your support for this measure on April 14.. the hearing in Sacramento. AB 2980 will be heard by the same committee and on the same day as ... ........ ........ ........ another bill the League is closely monitoring (and BOE HEARING ON LAND'S END ISSUE actively opposing) AB 2702 (Steinberg). Thus, a trip to Sacramento on April 14. would give cities the The State Board of Equalization (BOE) has opportunity to voice their opinions on these two issues of critical importance. called an interested parties meeting on April 1 at BOE offices in Sacramento to discuss the Land's While Assemblyman Salinas is expected to End request for a seller's permit. Essentially, make several minor changes to AB 2980 between Land's End plans to set up a credit office in a now and April 14., the core concept underlying the Califomia city and wishes to establish that office bill will remain the same. One change: the thresh- as it point of sale for catalog and intemet pur- old for qualifying for production-based certification chases by Califomia residents. has been slightly increased from 15% to 20%. This threshold has been a major source of controversy The issue as framed by BOE is: during negotiations. Building industry organizations consider even the 15% standard to be too high, 'Should a sales tax permit be issued to out-of- while the Sacramento region is advancing a similar state retailers who currently collect and report use proposal that sets the threshold at 10%. tax, based on the retailer's in-state location where Meanwhile, housing advocates insist that all the the retailer's sole activity is performing customer credit checks or a similar function which previ- proposed standards fall far short of what they ously has not been considered sales negotiation? expect in order to justify release from HCD over- If so, the incidence of tax would shift from con- sight. sumers to the retailer, and the allocation of the Other minor changes to the bill involve provi- local portion of the tax collected would shift from sions for more public review and discussion as part cities and counties where the buyers reside to the of the production-based certification projects, and local govemment where the credit check activity is language that would authorize HCD to audit jurisdic- performed. The issue may result in proposed tions if, after three years, they suspect may be amendments to Regulations 1620, 1699, 1802 acting in bad faith. and possibly other regulations." Requested Action For Cities: The meeting notice and staff report on this issue may be found at : http://www.boe.ca.Clov/ meetinCls/pdf/1620dp.Ddf City officials may attend 1. Send Support Letters: Most of the time in person or via teleconference. Individuals that land use legislation is oriented toward removing plan on attending should notify BOE staff so the local authority. this is a positive bill that seeks to meeting room and conference line can accommo- restore local authority to cities that are doing what date all interested parties. PAGE 2/PRIORITY FOCUS Visit the League's Official Web Site--www.cacities.org