Bill > SB686

This bill amends housing-related laws to provide the Department of Housing and Community Development with more flexibility in managing affordable housing loans and regulatory agreements. Specifically, the bill allows the department to approve new actions like paying off loans before their term ends, extracting equity from developments, and adding or waiving certain regulatory agreement requirements, provided these actions do not result in significant rent increases for tenants. The bill defines "capitalized operating reserves" as funds to cover potential operating deficits for assisted units, including operations, supportive services, and rent subsidies. It also sets guidelines for how and when the department can approve loan extensions, subordinations, and investments, with a focus on maintaining the quality of existing affordable housing. The bill limits developer fees to amounts allowed by the California Tax Credit Allocation Committee or 25% of actual rehabilitation costs, and introduces provisions to protect existing tenants from substantial rent increases. Additionally, the bill makes technical changes to definitions in the No Place Like Home Program, which provides funding for permanent supportive housing for homeless or at-risk populations. The overall intent is to provide more administrative flexibility while maintaining affordability and tenant protections in housing developments.

Budget and Finance, Housing and Urban Affairs

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB686