Bill > AB2020

This bill allows the Department of Housing and Community Development (HCD), which administers housing programs and provides financial assistance like deferred payment loans, to authorize the transfer of money between different rental housing developments owned by the same entity. Specifically, the HCD can permit the movement of "excess reserves" (funds set aside for repairs, operations, or transitions that are no longer needed or exceed the minimum required by the HCD's agreements) and "excess operating income" (annual income that is more than 1.15 times the required annual debt payments, provided the owner can show sufficient income over 15 years) from one development to another, as long as both developments are subject to an HCD regulatory agreement and share the same owner or an affiliated entity. This provision aims to improve the financial stability of developments financed by the HCD.

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB2020