Health Service District Affordable Housing Service

Under current law, a special district is required to conform to its approved service plan and must petition the governing body of the county or municipality that approved the formation of the special district for approval of any material modifications of its approved service plan. Material modifications include a change in services provided by the special district, a decrease in the financial ability of the district to discharge existing or proposed indebtedness, and a decrease in the existing or projected need for organized service in the district's service area. The court that approved the organization of the special district may enjoin any material departure from the district's service plan as originally approved or from the district's service plan as modified. In the case of a health service district, a change in service by the district is not a material modification to or departure from the district's approved service plan, unless the change affects the license or certificate of compliance issued to the district by the department of public health and environment. The bill expands this provision to provide that the addition of affordable housing services to a health service district's service plan is not a material modification to or departure from the district's approved service plan so long as a majority of the board of directors of the district affirmatively votes to approve the addition of affordable housing services. With this change, a health service district is able to provide affordable housing services, which are defined as the planning, financing, acquisition, construction, reconstruction or repair, maintenance, management, and operation of affordable housing-related projects or programs, without needing to seek approval for a material modification to or departure from the district's approved service plan.The bill also makes conforming amendments.(Note: This summary applies to this bill as introduced.)