AB 2674

Bill Subjects

Abstract

Existing law establishes the California Housing Finance Agency within the Department of Housing and Community Development, and authorizes the agency to, among other things, make loans to finance affordable housing, including residential structures, housing developments, multifamily rental housing, special needs housing, and other forms of housing, as specified. This bill would establish the California Affordable and Foster Youth Housing Finance Innovation Program and would require the agency to issue credit instruments, as defined, to qualified housing sponsors, as defined, for the construction, acquisition, and renovation of qualified projects, as defined. For all dwelling units in a qualified project that are reserved for specified tenants, the bill would require the qualified housing sponsor to, upon request of the agency, verify each tenant that satisfies specified provisions is either a current or former foster youth or a low-income household and would prohibit the qualified housing sponsor from charging such tenants a rent that exceeds the fair market rent, as specified. The bill would set forth the requirements for the agency to administer the program including, among other requirements, to provide to an applicant a written notice informing the applicant whether the agency has approved or disapproved the application, and if disapproved, the reason for the disapproval, as specified. The bill would require the agency to issue loan guarantees for qualified loans made by financial institutions to qualified housing sponsors for the construction, acquisition, and renovation of qualified projects. The bill would also require the agency to enter into agreements to make lines of credit available, as specified, to obligors in the form of direct loans to be made by the agency for a qualified project. The bill would prohibit a credit instrument issued under these provisions from obligating the General Fund and would require a secured loan guarantee, secured loan, or line of credit issued under these provisions be exclusively secured by moneys in the California Housing Finance Fund from specified revenue sources. The bill would also make related findings and declarations.