§ 50406.3. — 50406.3. (Added by Stats. 2024, Ch. 264, Sec. 1.)

California § 50406.3.

• Jurisdiction: California
• Code HSC: Health and Safety Code - HSC
• Div. 31.: DIVISION 31. HOUSING AND HOME FINANCE
• Part 2.: PART 2. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
• Ch. 1.: CHAPTER 1. Organization of the Department and General Powers

Text

(a)
Notwithstanding any other law, any funds approved, reserved, or allocated by the department after the effective date of the guidelines required pursuant to subdivision (b) and for purposes of providing a loan under the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675)), the Joe Serna, Jr. Farmworker Housing Grant Program (Chapter 3.2 (commencing with Section 50515.2)), the Affordable Housing and Sustainable Communities Program (Part 1
(commencing with Section 75200) of Division 44 of the Public Resources Code), or any additional multifamily housing lending program that the department elects, may, at the option of the borrower, be used for any of the following purposes:
(1)
Construction financing.
(2)
Permanent financing.
(3)
A portion for construction financing, with the balance used for permanent financing.
(b)
(1)
By July 1, 2026, the department shall adopt guidelines to implement this section as emergency
regulations. The adoption of emergency regulations authorized by this subparagraph is deemed to address an emergency, for purposes of Sections 11346.1 and 11349.6 of the Government Code, and the department is hereby exempted for this purpose from the requirements of subdivision (b) of Section 11346.1 of the Government Code. For purposes of subdivision (e) of Section 11346.1 of the Government Code, the 180-day period, as applicable to the effective period of an emergency regulatory action and submission of specified materials to the Office of Administrative Law, is hereby extended to one year.
(2)
By July 1, 2027, the department shall adopt guidelines, in accordance with the provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, to implement this section.
(3)
The
guidelines adopted under paragraphs (1) and (2) shall do all of the following:
(A)
Govern the disbursement and use of funds prior to permanent financing.
(B)
Be designed to establish an efficient and timely disbursement process that mitigates the additional risks of construction financing.
(C)
Address topics, including, but not limited to, project and sponsor construction financing eligibility, construction disbursement methods, and construction reporting requirements.
(c)
The department may require that at least 10 percent of the department’s loan amount may be retained until permanent conversion based on the project and sponsor risk profile.
(d)
The department may charge fees, including,
but not limited to, application and monitoring fees, to cover the enhanced administrative costs provided under this section.
(e)
This section shall not be construed to limit the eligible uses of funds otherwise authorized under any program provided under this part.
(f)
The implementation of this section is contingent upon appropriation by the Legislature of sufficient funds to the department to create and adopt guidelines pursuant to subdivision
(b) and to administer multifamily housing programs for this purpose.

Legislative History

Added by Stats. 2024, Ch. 264, Sec. 1. (AB 1053) Effective January 1, 2025.