Housing and Land Policy

Policy Brief on Short-Term Rentals: Coming soon!

Housing and Land Advocacy

AB 569: A bill to facilitate the development of cooperative housing in California

UPDATE September 29, 2014

Over the weekend the Governor signed another bill that Sustainable Economies Law Center helped create! This bill, AB 569, will facilitate cooperative housing development in California, especially the creation of Limited Equity Housing Cooperatives (LEHCs). LEHCs provide residents with a unique form of equity stake in their home that restricts the resale value of shares to keep the prices low when regular market forces would otherwise drive them up.

Read the full chaptered bill here.

This is the culmination of three years of work by a coalition of organizations, including the Sustainable Economies Law Center, the California Center for Cooperative Development, the Bay Area Community Land Trust, and other organizations that support affordable and cooperative housing throughout California. Assemblymember Ed Chau backed the bill and helped it through the legislative process.

So many people are seeking more stable and affordable housing in California, especially in the Bay Area's volatile housing market. The legal landscape surrounding the creation of cooperative housing in California is unnecessarily complex, which is why we helped write and support AB 569.

AB 569 will remove two of the most significant barriers to the cooperative ownership of housing and make one minor amendment to facilitate the operation of smaller housing cooperatives. AB 569 will address these barriers by making the following amendments:

1) Remove Barriers to Financing for Cooperative Housing: Until AB 569 goes into effect next year, the California Subdivided Lands Act prohibits the sale of housing cooperative shares when the units are subject to a mortgage secured by the entire property, which has the effect of banning housing cooperatives in California, since most cooperatives finance the purchase of a building with a single blanket mortgage. AB 569 creates safeguards to protect members of cooperatives, while allowing a cooperative to actually obtain a mortgage.

2) Modify the Situations in which Limited Equity Housing Cooperatives are Exempt from the Public Report Requirement: This expands the opportunities under which Limited Equity Housing Co-ops can secure an exemption from the costly public report requirement by adding state or federally charted credit unions and state or federally certified community development financial institutions (CDFIs) to the list of financing agencies qualified to enter into the regulatory agreement under the public report exemption.

3) Remove Burdensome Election Procedures for Collectively Governed Housing Cooperatives by exempting housing cooperative where every member serves on the board of directors from burdensome election procedure in the California Davis Stirling Act.

SELC and the rest of the coalition that worked on this bill also hoped for amendments to the California Subdivision Map Act that would remove other unnecessary barriers to creating cooperative housing in California. We got a lot accomplished with the bill this year by amending many confusing provisions of law, which required educating legislators about housing cooperatives. We didn't want to run the risk of the bill getting further stalled by adding more layers of complexity, but we hope to be part of efforts in the future to make more revisions to state laws so they are more conducive to housing cooperatives.

Click here to sign up for SELC's program newsletter and receive occasional action alerts and updates!

The Worker Cooperative Policy Coalition held two public feedback forums to solicit feedback on the proposed provisions of the worker cooperative policy that will be (hopefully) going to the California legislature in February 2014. Below are the notes of the feedback forums, one held on December 2nd at the Sudo Room in Oakland and the other held on December 7th in San Francisco at the Main Public Library.

Overall, the Sustainable Economies Law Center advocates for a more in-depth community-based renewable energy proposal from both PG&E and SDG&E as well as clear guidelines for implementation.  In doing so, SELC defines true community-based renewable projects to include the following attributes:

On December 20, 2013, the Sustainable Economies Law Center filed its Reply Comments in the CPUC proceeding.  The CPUC is reviewing how California's three investor-owned utilities propose to implement the newly enacted SB 43, which established a 600 MW distributed renewable energy pilot program.

On November 12, the Sustainable Economies Law Center became an official party to a proceeding at the California Public Utilities Commission (CPUC). Our intention is to help implement Senate Bill (SB) 43, the Green Tariff Shared Renewables Program, which was signed into law in October of 2013.  SB 43 establishes a 600 MW pilot program – the largest distributed generation goal in the nation – and allows customers of California’s three investor-owned utilities (IOUs) to subscribe to a shared renewable energy facility in their service territory and receive a credit in their monthly utility bill.

But the devil is in the details.

Governor Jerry Brown signed Assembly Bill 1616, the California Homemade Food Act, into law on September 21, 2012, and it went into effect on January 1, 2013. Now it is legal to produce some types of food for sale in a home kitchen. Next year, the California Neighborhood Food Act will likely become law, enabling citizens to legally sell produce grown on residential lots. The two laws will work together synergistically, such that tiny food artisans may source from tiny growers.

Food biz proprietors and other local experts offer their top tips for new food entrepreneurs.

SELC is supporting AB 1024, An Act to facilitate cooperative ownership of housing in California, along with several other organizations around the state. The bill passed unanimously out of the Committee on Housing and Community Development in the California State Assembly last month and is heading towards the Judiciary Committee. Click here to learn more.

We believe that a resilient and just economy includes many diverse forms of exchange, allowing all members of a community to meaningfully participate in the economy and have their gifts valued appropriately. Community currencies are one way of strengthening both local economies and our national economy as a whole, by giving more people access to a means of exchange and thus increasing economic activity in ways that support, rather than destroy, local communities and the natural world.

Assemblyman Mike Gatto (D-Los Angeles) introduces SELC's The California Homemade Food Act (AB 1616) to create a pathway for the legal sale of safe homemade food products -- helping micro food businesses throughout the state prosper, and ultimately foster the healthy/local food movement.