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.