Housing finance: barriers to downsizing: study., the official text

An act to add and repeal Section 50464.5 of the Health and Safety Code, relating to housing.

LEGISLATIVE COUNSEL'S DIGEST

Existing law establishes the Department of Housing and Community Development and authorizes the department to study the operation and enforcement of specified laws related to housing finance, taxes, redevelopment programs, and public housing projects, as related to housing and community development.
This bill would require the department, upon appropriation by the Legislature, to conduct a study to assess the need and desire among seniors 60 years of age and older to downsize their homes, as specified. The bill would require the department to submit a report on the study to the Legislature within one year of an appropriation made for this purpose. The bill would repeal its provisions on January 1, 2032.

The people of the State of California do enact as follows:

SECTION 1.
Section 50464.5 is added to the Health and Safety Code, to read:
50464.5.
(a) The department shall conduct a study to assess the need and desire among seniors to downsize their homes. The purpose of the study shall be to enable the department to do all of the following:
(1) Examine the primary reasons seniors choose to downsize, including the role of financial challenges.
(2) Determine to what extent financial challenges are a barrier to downsizing.
(3) Identify nonfinancial barriers that limit seniors’ ability to downsize.
(4) Analyze trends across different senior age groups regarding housing preferences, including size and architectural characteristics and their impact on mobility.
(5) Evaluate the potential benefits and feasibility of enabling seniors to transfer their existing mortgage interest rate to a new home when downsizing and whether seniors would utilize this option.
(b) Not later than one year following an appropriation made for purposes of this section, the department shall submit a report on the study and its findings, as described in subdivision (a), to the Legislature, in compliance with Section 9795 of the Government Code. The report shall include findings and recommendations regarding potential policy options to facilitate downsizing opportunities for seniors.
(c) For purposes of this section, “senior” means a person 60 years of age or older.
(d) This section shall become operative only upon appropriation by the Legislature.
(e) This section shall remain in effect only until January 1, 2032, and as of that date is repealed.