Department of Housing and Community Development.
Significantly, AB1789 expands the criteria for what can be classified as a 'challenged development.' Under this bill, a challenged development is defined as one that is at least 15 years old, primarily serves low-income households, and lacks sufficient resources to complete necessary rehabilitation. This definition aims to direct financial support towards housing projects that require immediate attention to maintain their affordability and livability for vulnerable populations.
Assembly Bill 1789, introduced by Assembly Member Quirk-Silva, seeks to amend Section 50607 of the Health and Safety Code, enhancing the mandate of the Department of Housing and Community Development. The bill aims to provide loans and grants to rehabilitate department-funded housing projects that either have expired affordability restrictions or are at risk of conversion to market-rate housing. It emphasizes supporting developments that serve very low-income households, defined as those with incomes not exceeding 45% of the area median gross income.
A notable aspect of the bill is the prioritization of loans and grants for housing projects with expired affordability restrictions, thereby preventing potentially vulnerable families from being displaced through market pressures. Critics may argue that while the bill addresses pressing needs for affordable housing, it could inadvertently create a dependency on state funding and limit the initiative for private investments in housing development. At the same time, supporters contend that this bill is critical to preserving mixed-income communities and preventing further economic segregation in California's housing market.
The bill also allows the Department to establish specific fees related to the transaction and processing of loans, which can be waived if it is deemed necessary for project feasibility. This flexibility is aimed not only at ensuring the financial feasibility of rehabilitation projects but also at reducing potential barriers to accessing crucial funding for housing developers. By permitting these adjustments, AB1789 aims to foster a sustainable approach to housing affordability while addressing the unique challenges faced by older housing developments.