Thursday, July 18, 2024

BAHFA In 2019, the Legislature enacted AB 1487 (Chiu), to establish the Bay Area Housing Finance Authority (BAHFA). BAHFA is authorized to raise, administer, and allocate funding and provide technical assistance in the nine-county Bay Area region for tenant protection, affordable housing preservation, and new affordable housing production. Two governmental entities provide region-wide housing planning: the Metropolitan Transportation Commission (MTC) and the Association of Bay Area Governments (ABAG). These entities govern BAHFA. Among its powers, AB 1487 allows its board to place various revenue-generating measures on the ballot in all nine Bay Area counties. Specifically, the bill allows the authority to approve:

• Various types of special taxes, including parcel taxes;
• A regional commercial linkage fee; and
• General obligation and revenue bonds.

If approved, BAHFA retains 20 percent of the revenue raised and distributes the remaining funds directly to counties or cities for specified housing projects, programs, and related infrastructure. BAHFA planned to put a regional financing measure on the November 2020 ballot, but the COVID-19 pandemic forced the agency to delay its plans. The Budget Act of 2021 (SB 129, Skinner) allocated $20 million to BAHFA to fund five BAHFA pilot programs.

In June, the BAHFA board agreed to ask voters across the nine counties of the Bay Area to approve an IOU of up to $20 billion dollars. The bulk of the funds would go toward the construction of new subsidized housing projects, with the rest to be spent buying up existing units (to make or keep them affordable) and on housing-related infrastructure.

But big borrowing comes with a big cost. The authority estimates that paying off principal and interest will add up to nearly $50 billion, to be paid via higher property taxes. Even for one of California’s most reliably progressive regions, that’s no sure thing. Last March, a mental health housing and treatment bond was backed by Gov. Gavin Newsom and supporters spent nearly 15,000 times more than the opponents. Still, Prop. 1 passed by less than half of a percentage point. Polling commissioned by BAHFA found that 54 percent of likely voters support the bond. That may be more than a majority, but in California, where most local bonds require the backing of two-thirds of voters, that isn’t enough to pass. That could change this November. Legislators approved a constitutional amendment to reduce the threshold needed to approve local housing and infrastructure borrowing to 55 percent. That change is headed for the November ballot, and if it passes, it would apply to any bond concurrently on the ballot, including the Bay Area bond. That means the fate of California’s largest-ever housing bond may hinge on the outcome of not one ballot measure but two.

But, and I suspect every reader saw this coming, the board concluded (after careful study, I am sure) that any money they send to local agencies to produce this vitally needed housing comes with a payout to the State Building and Construction Trades Council.

And here comes Senator Dave Cortese to the rescue. His SB 753, that was introduced to require motion picture production employers to hire a qualified set safety advisor and to be on set daily, was stripped of that language and amended to mandate that any construction or rehabilitative project receiving funding from BAHFA is a public work and subject to prevailing wage and a PLA. Who are Dave’s leading campaign contributors? General trade unions and public sector unions, of course. The Assembly Housing Committee approved the bill on a party-line vote, and it is awaiting judgment in Assembly appropriations when the Legislature returns in August.
___

California Court of Appeal Thwarts Efforts to Conceal Important Driving History Information from Employers California employers are familiar with how officials continue to restrict employers' access to public records, including criminal history information. For example, lengthy delays in completing standard criminal background checks are now routine in California. Apart from criminal background checks, many employers rely on motor vehicle record checks (MVRs) to vet candidates for positions that require driving as part of the job. In Doe v. California Dept. of Motor Vehicles, the court of appeal rejected the plaintiffs’ efforts to enjoin the Department of Motor Vehicles (DMV) from releasing information about the reason for a driver’s alcohol-impaired driving license suspension (e.g., the driver had an excessive blood-alcohol level) when the driver has not been convicted. Reversing the trial court, the court of appeal held the disclosure of such information does not constitute the disclosure of information about a non-conviction arrest within the meaning of California’s privacy laws. This is a rare “win” for employers in the Golden State. Story
___

“New PAGA” Brings Guarded Optimism to California Employers The long-awaited PAGA reform legislation (“New PAGA”) brings significant change and some clarification to the 20-year-old law. It reconciles previously ambiguous interpretations of the law and adds new provisions that will have far-reaching effects on the litigation of PAGA actions. The new law provides further guidance and new opportunities for employers regarding plaintiff standing, cure, remediation, early settlement opportunities, and adjusted default penalty amounts. Some expect these changes to generate significant future litigation regarding their scope and implementation. More
___

Five + Four = Nine The Los Angeles County Board of Supervisors is set to consider a proposed charter amendment to increase the number of board seats from five to nine. Each LA County supervisor oversees a district of approximately 2 million people and earns about $280,000. The proposal aims to establish a governance structure that is "more representative, accountable, and efficient." The county has not released a formal estimate for the cost of the proposed changes. If the board approves the proposal, which was announced last week by Supervisors Lindsey Horvath and Janice Hahn, it will go before voters on the November ballot. If the motion passes tomorrow, it will return at least twice to the board for final votes on language. The proposal also includes two additional reform measures changing the structure of the county's government. The County Chief Executive position, which oversees the county's $45.6 billion budget, would change from a board appointment to an elected post. It would also create an independent ethics commission. Fact sheet
___

JATCs Rule The Biden/Harris administration has been on a blitz promoting registered union-friendly apprenticeships. Last Thursday, it doled out more than $244 million through a pair of grant programs. White House domestic policy adviser Neera Tanden also traveled with acting Labor Secretary Julie Su to Williamsport, Pennsylvania, to tout the announcement. It was part of a two-day swing through the Keystone State for Su, also joined in Philadelphia by Deputy Treasury Secretary Wally Adeyemo. Treasury recently finalized regulations tying registered apprenticeships and prevailing wage requirements to lucrative clean energy tax credits. Adeyemo said his priorities are ensuring employers are aware of these incentives — and that Treasury is serious about enforcing the labor requirements. “If you're going to claim the tax credit, you have to do the right thing and make sure you're paying employees the prevailing wage and making sure you're using legitimate apprenticeship programs,” he said in an interview. DOL is also working on an overhaul of the rules for apprenticeships, with the agency targeting August to finalize them — a potentially risky move that would expose them to a possible GOP rollback depending on the elections.
___

Mark Who? Democrat donors are talking up a new potential candidate: Senator Mark Kelly of Arizona. Kelly, a former astronaut and U.S. Navy fighter pilot has won two elections in a crucial battleground state, demonstrates a potential allure to undecided moderates. (He is married to Gabby Giffords, the former Arizona Representative who survived an assassination attempt in 2011.) For some Democratic financial supporters, his bio makes him the man of the moment. However, Kelly has many drawbacks that other donor wish-list names share. Those include a lack of name recognition, logistical hurdles to taking over the Biden campaign’s infrastructure, and money. Also, a lack of experience on the national and international stage and side-eye from Arizona’s Bob Bartlett.
___

Taxpayers Bail Out Another Failing Union Pension Fund With $1.5 Billion On Monday, the Pension Benefit Guaranty Corporation (PBGC) announced that it had approved giving $1.5 billion of taxpayer money to yet another underfunded union pension plan: The American Federation of Musicians and Employers Pension Plan (American Federation of Musicians Plan), which is based in New York City and covers 49,180 participants in the entertainment industry. Story
___

PROP 36 Lindsey Cobia, a consultant with close ties to Newsom, will lead the “No” campaign on the tough-on-crime initiative. Cobia is not working on behalf of the governor. Still, the two are on the same page: Besides her new gig battling Prop 36, Cobia is a key official on Newsom’s bid to make Democratic inroads in red terrain. Newsom is expanding his offensive against national Republican figures by channeling $10 million into a new political organization that will wade into red states through the 2024 cycle.

In a glossy launch video featuring images of longtime GOP nemeses like former President Donald Trump, Florida Gov. Ron DeSantis and Texas Gov. Greg Abbott, Newsom said his newly launched “Campaign for Democracy” committee would organize and spend money in “states where freedom is most under attack.”
___

More SCOC Tinkering with Voting The California Supreme Court has signaled they will consider a case asking for the removal of a November ballot measure that targets the funding of one organization, the AIDS Healthcare Foundation. Late last week, the court requested briefs related to the Proposition 34 challenge on an expedited timeline, an unusual request that suggests it is open to hearing the case. If the state's highest court removes the measure from the November ballot, it will mark the second such decision in recent weeks. Last month, the court killed the Taxpayer Protection Act, a high-profile initiative that would have made raising taxes in the state more difficult. Opponents of Prop 34 have argued that it is unconstitutional because it targets one organization, the AIDS Healthcare Foundation. The measure would require AHF to spend 98 percent of its taxpayer-generated revenues on direct patient care, an apparent attempt to stop the tax-exempt nonprofit from using its funding to advance its political agenda, including expanded rent control, at the ballot box. On Friday, the California Apartment Association filed a brief in support of Prop 34 — and the court asked for a reply from AHF within two business days. “It doesn’t happen often,” said Jerry Flanagan, the litigation director for Consumer Watchdog, a progressive non-profit that filed an amicus letter on behalf of AHF, about the quick timeline. “The justices are not going to push a quick turnaround if they’re not interested.”

Thank goodness we have the court protecting a voter’s right to vote!
___

Matt Haney’s Boozy Campaign Fundraisers Under Investigation by State Watchdog Assembly Member Matt Haney’s mixing of business with pleasure by holding boozy campaign fundraisers at San Francisco 49ers games, Broadway shows and other sporting events has run the state assemblymember into hot water. The California Fair Political Practices Commission (FPPC) is investigating Haney’s campaign this week after The Standard reported unusual fundraisers frequently featured on Haney’s Instagram account as he snapped pictures with family and friends. Haney spent more than $65,000 in campaign funds on 49ers tickets since the beginning of last year. His campaign also spent thousands on tickets, food and drinks while Haney watched the San Francisco Giants, Golden State Warriors and Broadway shows like “The Lion King.” Many of Haney’s recent donors said they were not invited to the games, raising questions about who attended. Story