COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager’s Office

DATE:

June 28, 2011

BOARD MEETING DATE:

July 12, 2011

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

David S. Boesch, County Manager

SUBJECT:

County Manager’s Report #6

A.

Assembly Bill 1103 (Huffman) Land use: housing element.

RECOMMENDATION:

Adopt a resolution in support of Assembly Bill 1103 (Huffman) Land use: housing element.

BACKGROUND:

Under current law, every local government is required to prepare a housing element as part of its general plan. The housing element process begins when the Department of Housing and Community Development (HCD) determines the number of new housing units a region is projected to need at all income levels (very low-, lower-, moderate-, and above-moderate income) to accommodate population growth and overcome deficiencies in the housing supply. This number is often referred to as the RHNA number (short for regional housing needs assessment). The Council of Governments (COG) for the region then assigns a share of the RHNA number to every local government in the region based on a variety of factors.

DISCUSSION:

Assembly Bill 1103 (Huffman) would expand the types of units that can be substantially rehabilitated for purposes of meeting housing element and regional housing needs assessment (RHNA) requirements. Specifically, it would allow a local government to appeal to their COG for redesignation (from “metropolitan” to “suburban” for instance), if they can demonstrate justification. The COG could consider redesignating the jurisdiction, or approving an appropriately revised density requirement. The bill would allow second units (e.g., granny flats) that are converted from non-affordable to affordable housing to qualify under the 25 percent conversion cap, and it would also allow local governments to include the conversion of foreclosed property, acquired by the local government and converted to low or very-local income housing with long-term affordability covenants, under the 25 percent allowance for converted properties.

The Legislative Committee has reviewed the bill and recommends the Board support the bill.

Approval of this resolution contributes to the Shared Vision of 2025 of a Livable Community by supporting policies that would expand the types of housing units that local governments can include in their RHNA requirements. The Resolution has been reviewed and approved as to form by County Counsel.

FISCAL IMPACT:

None to the County.

B.

Senate Bill 517 (Lowenthal) High Speed Rail Authority.

RECOMMENDATION:

Adopt a resolution in support of Senate Bill 517 (Lowenthal) High Speed Rail Authority.

BACKGROUND:

The California High-Speed Rail Act (HSRA) (Chapter 796, Statutes of 1996) established the HRSA as an independent authority consisting of a nine-member board; five members are appointed by the Governor, and two members each are appointed by the Senate Rules Committee and the Speaker of the Assembly. In addition, the HRSA has an executive director, appointed by the board, and a staff of less than 20.

DISCUSSION:

Senate Bill 517 (Lowenthal) would vacate the membership of the current board and require new appointments of members with various changes, including requiring specific expertise of some members. It also would place the HRSA under the Business, Transportation and Housing Agency (BT&H). The bill would sunset the terms of the existing board to January 2012. Proposed new members would include five appointed by the Governor (each with specified expertise and subject to Senate confirmation); two appointed by the Senate (one of whom represents organized labor), two members appointed by the Assembly (one of whom represents organized labor); and the Secretary of BT&H to serve as a nonvoting ex-officio member. The bill would also impose conflict of interest provisions including prohibiting board members from taking a job with a firm that is under contract with the HSRA and participating in decision-making on an issue before the HSRA if the member’s spouse, minor child, or partner has a financial interest in that issue within two years of appointment to the position.

The Legislative Committee has reviewed the bill and recommends the Board support the proposed legislation.

Approval of this resolution contributes to the Shared Vision of 2025 of a Collaborative Community by supporting policy changes that would ensure that the HSRA is more accountable to both the Executive Branch and Legislature and that the membership of the HSRA has the necessary expertise to manage the project, which is slated to run through San Mateo County. The Resolution has been reviewed and approved as to form by County Counsel.

FISCAL IMPACT:

None to the County.

C.

Assembly Bill 1158 (Calderon) Deferred deposit transactions.

RECOMMENDATION:

Adopt a resolution in opposition to Assembly Bill 1158 (Calderon) Deferred deposit transactions.

BACKGROUND:

The California Deferred Deposit Transaction Law (CDDTL), also known as the Payday Loan Law, allows lenders licensed under its provisions to defer the deposit of a customer’s personal check for up to 31 days; limits the maximum value of the check to $300; limits the maximum fee to 15 percent of the face amount of the check; and requires payday lenders to distribute a notice to customers prior to entering into any payday loan transaction that includes information about the loan and loan charges and a listing of the borrower’s rights. Existing law also allows payday lenders to grant borrowers an extension of time or a payment plan to repay an existing payday loan, and prohibits the lender from charging any additional fee in connection with the extension or payment plan. Payday lenders are also prohibited from entering into another payday loan with a customer who already has an outstanding payday loan. Licensees that violate the law are subject to suspension or revocation of their licenses and subject to civil penalties of $2,500 per violation.

DISCUSSION:

Assembly Bill 1158 would increase the maximum face value of a check used to obtain a payday loan from $300 to $500. This action would effectively increase the maximum payday loan amount from $255 to $425.

The Legislative Committee recommends the Board oppose the bill.

Approval of this resolution contributes to the Shared Vision of 2025 of a Livable Community by supporting policies that promote responsible lending practices in low-income communities. The Resolution has been reviewed and approved as to form by County Counsel.

FISCAL IMPACT:

None to the County.

D.

Assembly Bill 828 (Swanson) Food stamps: eligibility: drug felonies.

RECOMMENDATION:

Adopt a resolution in support of Assembly Bill 828 (Swanson) Food stamps: eligibility: drug felonies.

BACKGROUND:

Existing law provides for the federal Supplemental Nutrition Assistance Program (SNAP), formerly the Food Stamp Program, also known in California as CalFresh Program. SNAP provides federal food assistance benefits through the states and distributes to eligible individuals by each county. Those convicted of a felony drug crime are ineligible for SNAP or benefits funded by Temporary Assistance for Needy Families (TANF), which then precludes not just the offender, but also the family, including children from receiving the food benefits. States are, however, allowed to opt out of the disqualification in whole or part. Current state law opts into the federal prohibition on SNAP eligibility for persons convicted of drug trafficking or who have been convicted of soliciting, inducing, encouraging or intimidating a minor to participate in such crimes. Finally, current state law opts out of the federal prohibition on CalFresh eligibility for individuals convicted of a use or possession-related drug felony that can prove completion, participation in, enrollment in, or placement on a waiting list for a government-recognized drug treatment program, or provide other evidence that illegal use of controlled substances has ceased.

DISCUSSION:

Assembly Bill 828 (Swanson) would allow individuals convicted of drug-related felonies to receive federal CalFresh (food stamps) benefits.

The Legislative Committee has reviewed the bill and recommends the Board support the bill.

Approval of this resolution contributes to the Shared Vision of 2025 of a Healthy Community by supporting policies that assist individuals and families to achieve economic self sufficiency. The Resolution has been reviewed and approved as to form by County Counsel.

Performance Measure(s):

Measure

FY 2009-10
Actual

FY 2010-11
Projected

Federal/State Measures analyzed and acted on

57

60

FISCAL IMPACT:

Minor absorbable workload to the Human Services Agency to process additional CalFresh applications or to adjust existing family CalFresh benefits. Unknown savings, to the extent that federal food assistance reduces the need for other kinds of public benefits. Unknown local tax revenues to the extent that new CalFresh recipients spend funds on taxable goods.