Finance authority and housing grant recipients would report public spending

The finance authority would track public money and report on its balances and use to state officials. Reports and accountings would go to the budget administrator, the Legislative Fiscal Analyst, and the Director of Economic Development. The authority would provide other information it holds about planned or actual public spending when one of the named officials asks. The authority would report fund balances at least 20 days before each regular legislative session and account for transactions monthly and when a named official asks.

The Economic Development Department would pay housing grants in two parts and require recipients to report their costs. These provisions concern qualified recipients of Affordable Housing Trust Fund grants for housing projects. The department would pay 80% after approving a recipient and the remaining 20% when the project is complete. Both payments would leave out general administration, housing management, lead-paint testing, and technical assistance costs. The department could require proof of payment when reasonable. If a recipient misses a quarterly report, the department could disqualify it from pending applications or for up to 24 months, or take other steps that do not unduly harm its reputation or ability to operate. This limit does not prevent appropriate action for illegal conduct. The staged payments would begin July 1, 2026. Quarterly reports would begin October 1, 2025, and be due within 30 days after each calendar quarter during the award period.

The department would set annual reporting rules and could require funds and certain equity positions back from recipients who fail to report. The rules would apply to qualified recipients of Affordable Housing Trust Fund awards. Reports would include funding obligations, repayment terms, and unspent or repaid balances. They would also cover awards for the specified home-purchase assistance purpose, including award amounts and estimated equity earned on purchased homes. If a recipient fails to meet the reporting rules, the department could require it to return all awarded funds and transfer recoverable housing-assistance equity positions to the department's satisfaction. The department's annual reporting requirements would begin July 1, 2027.