| 1 | 1 | | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1789Introduced by Assembly Member Quirk-SilvaJanuary 04, 2024 An act to amend Section 50607 of the Health and Safety Code, relating to housing. LEGISLATIVE COUNSEL'S DIGESTAB 1789, as introduced, Quirk-Silva. Department of Housing and Community Development.Existing law authorizes the Department of Housing and Community Development, upon appropriation, to make loans or grants, or both loans and grants, to rehabilitate, capitalize operating subsidy reserves for, and extend the long-term affordability of department-funded housing projects that have an affordability restriction that has expired, that have an affordability restriction with a remaining term of less than 10 years, or are otherwise at risk of conversion to market-rate housing.This bill would also authorize the department to make those loans and grants to rehabilitate, capitalize operating subsidy reserves for, and extend the long-term affordability of housing projects that qualify as a challenged development. The bill would define challenged development for these purposes to mean a development that meets a specified criteria including that the development is at least 15 years old, serves households of very low income or extremely low income, and has insufficient access to private or other public resources to complete substantial rehabilitation, as determined by the department. This bill would require the department to grant priority for these loans and grants to housing projects that are department funded and have an affordability restriction that has expired or have a remaining term of less than 10 years, or are otherwise at risk for conversion.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 50607 of the Health and Safety Code is amended to read:50607. (a) (1) Upon appropriation by the Legislature for purposes of this chapter, the department may make loans or grants, or both loans and grants, to rehabilitate, capitalize operating subsidy or replacement reserves for, and extend the long-term affordability of department-funded housing projects that have meet either of the following criteria:(A) The housing project is department-funded and has an affordability restriction that has expired, that have an affordability restriction with expired or has a remaining term of less than 10 years, or are is otherwise at risk for conversion.(B) The housing project is a challenged development.(2) The department shall grant priority to developments that meet the requirements described in subparagraph (A) of paragraph (1).(3) The department shall allow developments financed pursuant to this chapter to layer program funds with other federal, state, and local resources.(4) For purposes of this chapter, challenged development means a development that meets all of the following criteria:(A) The development is at least 15 years old.(B) The development either:(i) Serves households of very low income or extremely low income, such that the average maximum household income as restricted, pursuant to an existing regulatory agreement with a federal, state, county, local, or other governmental agency, is not more than 45 percent of the area median gross income, as determined under Section 42 of the Internal Revenue Code, relating to low-income housing credit, adjusted by household size.(ii) Is financed under Section 514 or 521 of the National Housing Act of 1949 (42 U.S.C. Sec. 1485).(C) The development has insufficient access to private or other public resources to complete substantial rehabilitation, as determined by the department.(b) Notwithstanding any other law, if the department makes a loan or grant pursuant to this chapter to a project that has an existing loan issued by the department for a multifamily housing project, the department may additionally approve an extension of the existing loan, the reinstatement of a qualifying unpaid matured loan, the subordination of a loan made by the department to new indebtedness, or an investment of tax credit equity for purposes of funding necessary rehabilitation and extending the affordability of the project without complying with the requirements of Chapter 3.9 (commencing with Section 50560). The department may also forgive some or all of the accrued interest on the existing department loan if necessary to facilitate the departments new rehabilitation loan.(c) The department may establish loan processing or transaction fees for loans or grants authorized by this chapter, as necessary, in an amount not to exceed the amount necessary to generate sufficient revenue to cover the cost of processing loan transactions under this chapter. However, the department may waive fees to the extent necessary for project feasibility.(d) The department may charge a monitoring fee in lieu of the required 0.42 percent per annum loan payments required by subdivision (a) of Section 50608. The department may capitalize fees authorized by this subdivision, at its discretion, as necessary to ensure the financial feasibility and long-term affordability of the project. All moneys set aside by the department to capitalize a monitoring fee pursuant to this subdivision shall be deposited in the Housing Rehabilitation Loan Fund and, notwithstanding Section 13340 of the Government Code, are continuously appropriated to the department for the purposes of the default reserve set forth in Section 50609.(e) The department may adopt guidelines to implement this chapter. Any guidelines adopted pursuant to this section are hereby exempted from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). |
|---|
| 2 | 2 | | |
|---|
| 3 | 3 | | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1789Introduced by Assembly Member Quirk-SilvaJanuary 04, 2024 An act to amend Section 50607 of the Health and Safety Code, relating to housing. LEGISLATIVE COUNSEL'S DIGESTAB 1789, as introduced, Quirk-Silva. Department of Housing and Community Development.Existing law authorizes the Department of Housing and Community Development, upon appropriation, to make loans or grants, or both loans and grants, to rehabilitate, capitalize operating subsidy reserves for, and extend the long-term affordability of department-funded housing projects that have an affordability restriction that has expired, that have an affordability restriction with a remaining term of less than 10 years, or are otherwise at risk of conversion to market-rate housing.This bill would also authorize the department to make those loans and grants to rehabilitate, capitalize operating subsidy reserves for, and extend the long-term affordability of housing projects that qualify as a challenged development. The bill would define challenged development for these purposes to mean a development that meets a specified criteria including that the development is at least 15 years old, serves households of very low income or extremely low income, and has insufficient access to private or other public resources to complete substantial rehabilitation, as determined by the department. This bill would require the department to grant priority for these loans and grants to housing projects that are department funded and have an affordability restriction that has expired or have a remaining term of less than 10 years, or are otherwise at risk for conversion.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | |
|---|
| 6 | 6 | | |
|---|
| 7 | 7 | | |
|---|
| 8 | 8 | | |
|---|
| 9 | 9 | | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION |
|---|
| 10 | 10 | | |
|---|
| 11 | 11 | | Assembly Bill |
|---|
| 12 | 12 | | |
|---|
| 13 | 13 | | No. 1789 |
|---|
| 14 | 14 | | |
|---|
| 15 | 15 | | Introduced by Assembly Member Quirk-SilvaJanuary 04, 2024 |
|---|
| 16 | 16 | | |
|---|
| 17 | 17 | | Introduced by Assembly Member Quirk-Silva |
|---|
| 18 | 18 | | January 04, 2024 |
|---|
| 19 | 19 | | |
|---|
| 20 | 20 | | An act to amend Section 50607 of the Health and Safety Code, relating to housing. |
|---|
| 21 | 21 | | |
|---|
| 22 | 22 | | LEGISLATIVE COUNSEL'S DIGEST |
|---|
| 23 | 23 | | |
|---|
| 24 | 24 | | ## LEGISLATIVE COUNSEL'S DIGEST |
|---|
| 25 | 25 | | |
|---|
| 26 | 26 | | AB 1789, as introduced, Quirk-Silva. Department of Housing and Community Development. |
|---|
| 27 | 27 | | |
|---|
| 28 | 28 | | Existing law authorizes the Department of Housing and Community Development, upon appropriation, to make loans or grants, or both loans and grants, to rehabilitate, capitalize operating subsidy reserves for, and extend the long-term affordability of department-funded housing projects that have an affordability restriction that has expired, that have an affordability restriction with a remaining term of less than 10 years, or are otherwise at risk of conversion to market-rate housing.This bill would also authorize the department to make those loans and grants to rehabilitate, capitalize operating subsidy reserves for, and extend the long-term affordability of housing projects that qualify as a challenged development. The bill would define challenged development for these purposes to mean a development that meets a specified criteria including that the development is at least 15 years old, serves households of very low income or extremely low income, and has insufficient access to private or other public resources to complete substantial rehabilitation, as determined by the department. This bill would require the department to grant priority for these loans and grants to housing projects that are department funded and have an affordability restriction that has expired or have a remaining term of less than 10 years, or are otherwise at risk for conversion. |
|---|
| 29 | 29 | | |
|---|
| 30 | 30 | | Existing law authorizes the Department of Housing and Community Development, upon appropriation, to make loans or grants, or both loans and grants, to rehabilitate, capitalize operating subsidy reserves for, and extend the long-term affordability of department-funded housing projects that have an affordability restriction that has expired, that have an affordability restriction with a remaining term of less than 10 years, or are otherwise at risk of conversion to market-rate housing. |
|---|
| 31 | 31 | | |
|---|
| 32 | 32 | | This bill would also authorize the department to make those loans and grants to rehabilitate, capitalize operating subsidy reserves for, and extend the long-term affordability of housing projects that qualify as a challenged development. The bill would define challenged development for these purposes to mean a development that meets a specified criteria including that the development is at least 15 years old, serves households of very low income or extremely low income, and has insufficient access to private or other public resources to complete substantial rehabilitation, as determined by the department. This bill would require the department to grant priority for these loans and grants to housing projects that are department funded and have an affordability restriction that has expired or have a remaining term of less than 10 years, or are otherwise at risk for conversion. |
|---|
| 33 | 33 | | |
|---|
| 34 | 34 | | ## Digest Key |
|---|
| 35 | 35 | | |
|---|
| 36 | 36 | | ## Bill Text |
|---|
| 37 | 37 | | |
|---|
| 38 | 38 | | The people of the State of California do enact as follows:SECTION 1. Section 50607 of the Health and Safety Code is amended to read:50607. (a) (1) Upon appropriation by the Legislature for purposes of this chapter, the department may make loans or grants, or both loans and grants, to rehabilitate, capitalize operating subsidy or replacement reserves for, and extend the long-term affordability of department-funded housing projects that have meet either of the following criteria:(A) The housing project is department-funded and has an affordability restriction that has expired, that have an affordability restriction with expired or has a remaining term of less than 10 years, or are is otherwise at risk for conversion.(B) The housing project is a challenged development.(2) The department shall grant priority to developments that meet the requirements described in subparagraph (A) of paragraph (1).(3) The department shall allow developments financed pursuant to this chapter to layer program funds with other federal, state, and local resources.(4) For purposes of this chapter, challenged development means a development that meets all of the following criteria:(A) The development is at least 15 years old.(B) The development either:(i) Serves households of very low income or extremely low income, such that the average maximum household income as restricted, pursuant to an existing regulatory agreement with a federal, state, county, local, or other governmental agency, is not more than 45 percent of the area median gross income, as determined under Section 42 of the Internal Revenue Code, relating to low-income housing credit, adjusted by household size.(ii) Is financed under Section 514 or 521 of the National Housing Act of 1949 (42 U.S.C. Sec. 1485).(C) The development has insufficient access to private or other public resources to complete substantial rehabilitation, as determined by the department.(b) Notwithstanding any other law, if the department makes a loan or grant pursuant to this chapter to a project that has an existing loan issued by the department for a multifamily housing project, the department may additionally approve an extension of the existing loan, the reinstatement of a qualifying unpaid matured loan, the subordination of a loan made by the department to new indebtedness, or an investment of tax credit equity for purposes of funding necessary rehabilitation and extending the affordability of the project without complying with the requirements of Chapter 3.9 (commencing with Section 50560). The department may also forgive some or all of the accrued interest on the existing department loan if necessary to facilitate the departments new rehabilitation loan.(c) The department may establish loan processing or transaction fees for loans or grants authorized by this chapter, as necessary, in an amount not to exceed the amount necessary to generate sufficient revenue to cover the cost of processing loan transactions under this chapter. However, the department may waive fees to the extent necessary for project feasibility.(d) The department may charge a monitoring fee in lieu of the required 0.42 percent per annum loan payments required by subdivision (a) of Section 50608. The department may capitalize fees authorized by this subdivision, at its discretion, as necessary to ensure the financial feasibility and long-term affordability of the project. All moneys set aside by the department to capitalize a monitoring fee pursuant to this subdivision shall be deposited in the Housing Rehabilitation Loan Fund and, notwithstanding Section 13340 of the Government Code, are continuously appropriated to the department for the purposes of the default reserve set forth in Section 50609.(e) The department may adopt guidelines to implement this chapter. Any guidelines adopted pursuant to this section are hereby exempted from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). |
|---|
| 39 | 39 | | |
|---|
| 40 | 40 | | The people of the State of California do enact as follows: |
|---|
| 41 | 41 | | |
|---|
| 42 | 42 | | ## The people of the State of California do enact as follows: |
|---|
| 43 | 43 | | |
|---|
| 44 | 44 | | SECTION 1. Section 50607 of the Health and Safety Code is amended to read:50607. (a) (1) Upon appropriation by the Legislature for purposes of this chapter, the department may make loans or grants, or both loans and grants, to rehabilitate, capitalize operating subsidy or replacement reserves for, and extend the long-term affordability of department-funded housing projects that have meet either of the following criteria:(A) The housing project is department-funded and has an affordability restriction that has expired, that have an affordability restriction with expired or has a remaining term of less than 10 years, or are is otherwise at risk for conversion.(B) The housing project is a challenged development.(2) The department shall grant priority to developments that meet the requirements described in subparagraph (A) of paragraph (1).(3) The department shall allow developments financed pursuant to this chapter to layer program funds with other federal, state, and local resources.(4) For purposes of this chapter, challenged development means a development that meets all of the following criteria:(A) The development is at least 15 years old.(B) The development either:(i) Serves households of very low income or extremely low income, such that the average maximum household income as restricted, pursuant to an existing regulatory agreement with a federal, state, county, local, or other governmental agency, is not more than 45 percent of the area median gross income, as determined under Section 42 of the Internal Revenue Code, relating to low-income housing credit, adjusted by household size.(ii) Is financed under Section 514 or 521 of the National Housing Act of 1949 (42 U.S.C. Sec. 1485).(C) The development has insufficient access to private or other public resources to complete substantial rehabilitation, as determined by the department.(b) Notwithstanding any other law, if the department makes a loan or grant pursuant to this chapter to a project that has an existing loan issued by the department for a multifamily housing project, the department may additionally approve an extension of the existing loan, the reinstatement of a qualifying unpaid matured loan, the subordination of a loan made by the department to new indebtedness, or an investment of tax credit equity for purposes of funding necessary rehabilitation and extending the affordability of the project without complying with the requirements of Chapter 3.9 (commencing with Section 50560). The department may also forgive some or all of the accrued interest on the existing department loan if necessary to facilitate the departments new rehabilitation loan.(c) The department may establish loan processing or transaction fees for loans or grants authorized by this chapter, as necessary, in an amount not to exceed the amount necessary to generate sufficient revenue to cover the cost of processing loan transactions under this chapter. However, the department may waive fees to the extent necessary for project feasibility.(d) The department may charge a monitoring fee in lieu of the required 0.42 percent per annum loan payments required by subdivision (a) of Section 50608. The department may capitalize fees authorized by this subdivision, at its discretion, as necessary to ensure the financial feasibility and long-term affordability of the project. All moneys set aside by the department to capitalize a monitoring fee pursuant to this subdivision shall be deposited in the Housing Rehabilitation Loan Fund and, notwithstanding Section 13340 of the Government Code, are continuously appropriated to the department for the purposes of the default reserve set forth in Section 50609.(e) The department may adopt guidelines to implement this chapter. Any guidelines adopted pursuant to this section are hereby exempted from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). |
|---|
| 45 | 45 | | |
|---|
| 46 | 46 | | SECTION 1. Section 50607 of the Health and Safety Code is amended to read: |
|---|
| 47 | 47 | | |
|---|
| 48 | 48 | | ### SECTION 1. |
|---|
| 49 | 49 | | |
|---|
| 50 | 50 | | 50607. (a) (1) Upon appropriation by the Legislature for purposes of this chapter, the department may make loans or grants, or both loans and grants, to rehabilitate, capitalize operating subsidy or replacement reserves for, and extend the long-term affordability of department-funded housing projects that have meet either of the following criteria:(A) The housing project is department-funded and has an affordability restriction that has expired, that have an affordability restriction with expired or has a remaining term of less than 10 years, or are is otherwise at risk for conversion.(B) The housing project is a challenged development.(2) The department shall grant priority to developments that meet the requirements described in subparagraph (A) of paragraph (1).(3) The department shall allow developments financed pursuant to this chapter to layer program funds with other federal, state, and local resources.(4) For purposes of this chapter, challenged development means a development that meets all of the following criteria:(A) The development is at least 15 years old.(B) The development either:(i) Serves households of very low income or extremely low income, such that the average maximum household income as restricted, pursuant to an existing regulatory agreement with a federal, state, county, local, or other governmental agency, is not more than 45 percent of the area median gross income, as determined under Section 42 of the Internal Revenue Code, relating to low-income housing credit, adjusted by household size.(ii) Is financed under Section 514 or 521 of the National Housing Act of 1949 (42 U.S.C. Sec. 1485).(C) The development has insufficient access to private or other public resources to complete substantial rehabilitation, as determined by the department.(b) Notwithstanding any other law, if the department makes a loan or grant pursuant to this chapter to a project that has an existing loan issued by the department for a multifamily housing project, the department may additionally approve an extension of the existing loan, the reinstatement of a qualifying unpaid matured loan, the subordination of a loan made by the department to new indebtedness, or an investment of tax credit equity for purposes of funding necessary rehabilitation and extending the affordability of the project without complying with the requirements of Chapter 3.9 (commencing with Section 50560). The department may also forgive some or all of the accrued interest on the existing department loan if necessary to facilitate the departments new rehabilitation loan.(c) The department may establish loan processing or transaction fees for loans or grants authorized by this chapter, as necessary, in an amount not to exceed the amount necessary to generate sufficient revenue to cover the cost of processing loan transactions under this chapter. However, the department may waive fees to the extent necessary for project feasibility.(d) The department may charge a monitoring fee in lieu of the required 0.42 percent per annum loan payments required by subdivision (a) of Section 50608. The department may capitalize fees authorized by this subdivision, at its discretion, as necessary to ensure the financial feasibility and long-term affordability of the project. All moneys set aside by the department to capitalize a monitoring fee pursuant to this subdivision shall be deposited in the Housing Rehabilitation Loan Fund and, notwithstanding Section 13340 of the Government Code, are continuously appropriated to the department for the purposes of the default reserve set forth in Section 50609.(e) The department may adopt guidelines to implement this chapter. Any guidelines adopted pursuant to this section are hereby exempted from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). |
|---|
| 51 | 51 | | |
|---|
| 52 | 52 | | 50607. (a) (1) Upon appropriation by the Legislature for purposes of this chapter, the department may make loans or grants, or both loans and grants, to rehabilitate, capitalize operating subsidy or replacement reserves for, and extend the long-term affordability of department-funded housing projects that have meet either of the following criteria:(A) The housing project is department-funded and has an affordability restriction that has expired, that have an affordability restriction with expired or has a remaining term of less than 10 years, or are is otherwise at risk for conversion.(B) The housing project is a challenged development.(2) The department shall grant priority to developments that meet the requirements described in subparagraph (A) of paragraph (1).(3) The department shall allow developments financed pursuant to this chapter to layer program funds with other federal, state, and local resources.(4) For purposes of this chapter, challenged development means a development that meets all of the following criteria:(A) The development is at least 15 years old.(B) The development either:(i) Serves households of very low income or extremely low income, such that the average maximum household income as restricted, pursuant to an existing regulatory agreement with a federal, state, county, local, or other governmental agency, is not more than 45 percent of the area median gross income, as determined under Section 42 of the Internal Revenue Code, relating to low-income housing credit, adjusted by household size.(ii) Is financed under Section 514 or 521 of the National Housing Act of 1949 (42 U.S.C. Sec. 1485).(C) The development has insufficient access to private or other public resources to complete substantial rehabilitation, as determined by the department.(b) Notwithstanding any other law, if the department makes a loan or grant pursuant to this chapter to a project that has an existing loan issued by the department for a multifamily housing project, the department may additionally approve an extension of the existing loan, the reinstatement of a qualifying unpaid matured loan, the subordination of a loan made by the department to new indebtedness, or an investment of tax credit equity for purposes of funding necessary rehabilitation and extending the affordability of the project without complying with the requirements of Chapter 3.9 (commencing with Section 50560). The department may also forgive some or all of the accrued interest on the existing department loan if necessary to facilitate the departments new rehabilitation loan.(c) The department may establish loan processing or transaction fees for loans or grants authorized by this chapter, as necessary, in an amount not to exceed the amount necessary to generate sufficient revenue to cover the cost of processing loan transactions under this chapter. However, the department may waive fees to the extent necessary for project feasibility.(d) The department may charge a monitoring fee in lieu of the required 0.42 percent per annum loan payments required by subdivision (a) of Section 50608. The department may capitalize fees authorized by this subdivision, at its discretion, as necessary to ensure the financial feasibility and long-term affordability of the project. All moneys set aside by the department to capitalize a monitoring fee pursuant to this subdivision shall be deposited in the Housing Rehabilitation Loan Fund and, notwithstanding Section 13340 of the Government Code, are continuously appropriated to the department for the purposes of the default reserve set forth in Section 50609.(e) The department may adopt guidelines to implement this chapter. Any guidelines adopted pursuant to this section are hereby exempted from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). |
|---|
| 53 | 53 | | |
|---|
| 54 | 54 | | 50607. (a) (1) Upon appropriation by the Legislature for purposes of this chapter, the department may make loans or grants, or both loans and grants, to rehabilitate, capitalize operating subsidy or replacement reserves for, and extend the long-term affordability of department-funded housing projects that have meet either of the following criteria:(A) The housing project is department-funded and has an affordability restriction that has expired, that have an affordability restriction with expired or has a remaining term of less than 10 years, or are is otherwise at risk for conversion.(B) The housing project is a challenged development.(2) The department shall grant priority to developments that meet the requirements described in subparagraph (A) of paragraph (1).(3) The department shall allow developments financed pursuant to this chapter to layer program funds with other federal, state, and local resources.(4) For purposes of this chapter, challenged development means a development that meets all of the following criteria:(A) The development is at least 15 years old.(B) The development either:(i) Serves households of very low income or extremely low income, such that the average maximum household income as restricted, pursuant to an existing regulatory agreement with a federal, state, county, local, or other governmental agency, is not more than 45 percent of the area median gross income, as determined under Section 42 of the Internal Revenue Code, relating to low-income housing credit, adjusted by household size.(ii) Is financed under Section 514 or 521 of the National Housing Act of 1949 (42 U.S.C. Sec. 1485).(C) The development has insufficient access to private or other public resources to complete substantial rehabilitation, as determined by the department.(b) Notwithstanding any other law, if the department makes a loan or grant pursuant to this chapter to a project that has an existing loan issued by the department for a multifamily housing project, the department may additionally approve an extension of the existing loan, the reinstatement of a qualifying unpaid matured loan, the subordination of a loan made by the department to new indebtedness, or an investment of tax credit equity for purposes of funding necessary rehabilitation and extending the affordability of the project without complying with the requirements of Chapter 3.9 (commencing with Section 50560). The department may also forgive some or all of the accrued interest on the existing department loan if necessary to facilitate the departments new rehabilitation loan.(c) The department may establish loan processing or transaction fees for loans or grants authorized by this chapter, as necessary, in an amount not to exceed the amount necessary to generate sufficient revenue to cover the cost of processing loan transactions under this chapter. However, the department may waive fees to the extent necessary for project feasibility.(d) The department may charge a monitoring fee in lieu of the required 0.42 percent per annum loan payments required by subdivision (a) of Section 50608. The department may capitalize fees authorized by this subdivision, at its discretion, as necessary to ensure the financial feasibility and long-term affordability of the project. All moneys set aside by the department to capitalize a monitoring fee pursuant to this subdivision shall be deposited in the Housing Rehabilitation Loan Fund and, notwithstanding Section 13340 of the Government Code, are continuously appropriated to the department for the purposes of the default reserve set forth in Section 50609.(e) The department may adopt guidelines to implement this chapter. Any guidelines adopted pursuant to this section are hereby exempted from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). |
|---|
| 55 | 55 | | |
|---|
| 56 | 56 | | |
|---|
| 57 | 57 | | |
|---|
| 58 | 58 | | 50607. (a) (1) Upon appropriation by the Legislature for purposes of this chapter, the department may make loans or grants, or both loans and grants, to rehabilitate, capitalize operating subsidy or replacement reserves for, and extend the long-term affordability of department-funded housing projects that have meet either of the following criteria: |
|---|
| 59 | 59 | | |
|---|
| 60 | 60 | | (A) The housing project is department-funded and has an affordability restriction that has expired, that have an affordability restriction with expired or has a remaining term of less than 10 years, or are is otherwise at risk for conversion. |
|---|
| 61 | 61 | | |
|---|
| 62 | 62 | | (B) The housing project is a challenged development. |
|---|
| 63 | 63 | | |
|---|
| 64 | 64 | | (2) The department shall grant priority to developments that meet the requirements described in subparagraph (A) of paragraph (1). |
|---|
| 65 | 65 | | |
|---|
| 66 | 66 | | (3) The department shall allow developments financed pursuant to this chapter to layer program funds with other federal, state, and local resources. |
|---|
| 67 | 67 | | |
|---|
| 68 | 68 | | (4) For purposes of this chapter, challenged development means a development that meets all of the following criteria: |
|---|
| 69 | 69 | | |
|---|
| 70 | 70 | | (A) The development is at least 15 years old. |
|---|
| 71 | 71 | | |
|---|
| 72 | 72 | | (B) The development either: |
|---|
| 73 | 73 | | |
|---|
| 74 | 74 | | (i) Serves households of very low income or extremely low income, such that the average maximum household income as restricted, pursuant to an existing regulatory agreement with a federal, state, county, local, or other governmental agency, is not more than 45 percent of the area median gross income, as determined under Section 42 of the Internal Revenue Code, relating to low-income housing credit, adjusted by household size. |
|---|
| 75 | 75 | | |
|---|
| 76 | 76 | | (ii) Is financed under Section 514 or 521 of the National Housing Act of 1949 (42 U.S.C. Sec. 1485). |
|---|
| 77 | 77 | | |
|---|
| 78 | 78 | | (C) The development has insufficient access to private or other public resources to complete substantial rehabilitation, as determined by the department. |
|---|
| 79 | 79 | | |
|---|
| 80 | 80 | | (b) Notwithstanding any other law, if the department makes a loan or grant pursuant to this chapter to a project that has an existing loan issued by the department for a multifamily housing project, the department may additionally approve an extension of the existing loan, the reinstatement of a qualifying unpaid matured loan, the subordination of a loan made by the department to new indebtedness, or an investment of tax credit equity for purposes of funding necessary rehabilitation and extending the affordability of the project without complying with the requirements of Chapter 3.9 (commencing with Section 50560). The department may also forgive some or all of the accrued interest on the existing department loan if necessary to facilitate the departments new rehabilitation loan. |
|---|
| 81 | 81 | | |
|---|
| 82 | 82 | | (c) The department may establish loan processing or transaction fees for loans or grants authorized by this chapter, as necessary, in an amount not to exceed the amount necessary to generate sufficient revenue to cover the cost of processing loan transactions under this chapter. However, the department may waive fees to the extent necessary for project feasibility. |
|---|
| 83 | 83 | | |
|---|
| 84 | 84 | | (d) The department may charge a monitoring fee in lieu of the required 0.42 percent per annum loan payments required by subdivision (a) of Section 50608. The department may capitalize fees authorized by this subdivision, at its discretion, as necessary to ensure the financial feasibility and long-term affordability of the project. All moneys set aside by the department to capitalize a monitoring fee pursuant to this subdivision shall be deposited in the Housing Rehabilitation Loan Fund and, notwithstanding Section 13340 of the Government Code, are continuously appropriated to the department for the purposes of the default reserve set forth in Section 50609. |
|---|
| 85 | 85 | | |
|---|
| 86 | 86 | | (e) The department may adopt guidelines to implement this chapter. Any guidelines adopted pursuant to this section are hereby exempted from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). |
|---|