California’s housing department may support repairs at qualifying older developments when lawmakers provide funds, and must prioritize certain department-funded projects and reserve part of each funding round for outside projects.
Older affordable housing with limited resources could qualify for loans or grants for repairs and to keep homes affordable longer, if the Legislature provides program money.
When awarding program loans and grants, the department must prioritize its funded projects whose affordability limits have expired, have less than 10 years left, or are otherwise at risk of conversion.
Before allocating program money, the department must assess the covered developments to help guide its program rules and funding decisions.
At least 10% of each funding round must go to qualifying challenged developments outside the department’s portfolio. If too few apply, the department may shift some of that share to department-funded projects.
The department may use different rules to choose projects and review their financing, depending on which eligible group they belong to.
The department may offer loans or grants to qualifying challenged developments. A challenged development must serve low-income households under a government agreement or be financed under a federal rural housing program. It must also meet the bill’s age, resource, and affordability tests. The Legislature must appropriate money for this program. Each development must meet the challenged-development definition, including being at least 15 years old and lacking enough private or public resources for substantial rehabilitation. The department may provide this support when the Legislature appropriates money for the program.
The department must give priority to qualifying department-funded projects. This priority applies when the department awards program loans or grants. The projects must be department-funded and have an expired affordability restriction, less than 10 years left on one, or another risk of conversion to market-rate housing.
The department must assess covered developments before allocating program funds. The text identifies department-funded projects at risk of losing affordability and challenged developments as the developments to evaluate. The evaluation must help inform program guidelines and funding decisions. The evaluation must happen before program funds are allocated.
The department must allocate at least 10% of each funding round to eligible developments not funded by the department. The set-aside is for challenged developments that are not department-funded. The department may allocate more based on application demand and available program resources. If too few nondepartment-funded developments apply, the department may allocate part of the 10% to department-funded projects. The minimum share applies to every funding round.
The department may use separate standards to choose and review projects. The groups are department-funded projects at risk of losing affordability and qualifying challenged developments.
No hearings or votes scheduled.