Bill > AB913

This bill enhances the California Department of Housing and Community Development's flexibility in managing rental housing developments by authorizing two key financial actions. First, the department can now transfer excess reserves or excess operating income between rental housing developments owned by the same sponsor or affiliate, which helps improve the fiscal integrity of housing projects. Specifically, "excess operating income" is defined as annual net operating income that exceeds 1.15 times the required annual debt service payments, provided the owner can demonstrate sufficient income over a 15-year period, while "excess reserves" refers to replacement, operating, or transition reserves that are no longer required or exceed the minimum amount mandated by the department's regulatory agreement. Second, the department can waive payment of residual receipts or minimum annual loan payments associated with these developments. These provisions give the department more discretionary power to support and maintain affordable housing projects by allowing more flexible financial management across related housing developments.

Budget and Finance, Housing and Urban Affairs

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB913