(Gabriel D) Housing programs: multifamily housing programs: expenditure of loan proceeds.
Current Text: Amended: 3/30/2023
Status: 4/3/2023-Re-referred to Com. on APPR.
Summary: Existing law establishes the Department of Housing and Community Development and requires it to administer various programs intended to promote the development of housing, including the Multifamily Housing Program, pursuant to which the department provides financial assistance in the form of deferred payment loans to pay for the eligible costs of development of specified types of housing projects. Existing law sets forth various general powers of the department in implementing these programs, including authorizing the department to enter into long-term contracts or agreements of up to 30 years for the purpose of servicing loans or grants or enforcing regulatory agreements or other security documents.
This bill would authorize a borrower to use any funds approved, reserved, or allocated by the department for purposes of providing a loan under any multifamily housing program under these provisions for construction financing, permanent financing, or a combination of construction financing and permanent financing, as provided. The bill would require the department to deposit funds provided to a borrower that requests the use of funds for construction financing with the first lender at or before the closing of the first lender’s construction loan, to be disbursed pursuant to guidelines adopted by the department, as provided. The bill would specify that these provisions do not limit the eligible uses of funds otherwise authorized under any program administered by the department.