On Sep. 10, CAL LEG enrolled bill on financing for multifamily housing.
CAL LEG enrolled Bill AB 1053 to modernize affordable housing financing system.
To allow developers to receive housing, community development (HCD) loan funds.
Act adds CAL LEG 31-2-1-50406.3 to the health and safety code, relating to housing.
Bill Provisions
Allows borrower to request HCD funding as construction loan or traditional permanent financing option; can additionally request HCD funding as combination of both.
Requires that any funds approved, reserved, or allocated by HCD for the purpose of providing a loan under multifamily housing (MHP) program offer option to borrower.
Optional for HCD funding to be used for construction financing; permanent financing.
Or may opt for portion for construction financing, balance for permanent financing.
Additionally applicable to loans provided under Joe Serna Jr. farmworker housing program;affordable housing, sustainable communities, or any MFH lending program.
Provides that nothing in this Act limits the existing eligible uses of HCD programs.
HCD must adopt emergency guidelines to implement changes in bill as regulations.
To implement changes exempt from Administrative Procedures Act (APA).
Must address specified criteria for how construction loans will be offered to developers.
Implementation of bill is dependent upon future appropriation by CAL LEG.
Legislative History
On Feb. 15, 2023, bill introduced in Assembly; on May 30, 2023, passed Assembly.
On May 31, 2023, bill was introduced in Senate; on Aug. 27, 2024, bill passed Senate.
On Sep. 10, 2024, bill was enrolled and presented to Governor, pending action.
Effectiveness
HCD must adopt emergency guidelines to implement changes in bill by Jul. 1, 2026.
HCD required to adopt guidelines subject to the APA by Jul. 1, 2027 .
Sep. 19, 2024 CAL LEG Governor Approval
On Sep. 19, 2024, CAL LEG reported bill AB 1053 signed by governor; enacted Ch 264.
No effective date specified; generally effective Jan. 1 after enactment, on Jan. 1, 2025.
HCD must adopt emergency guidelines to implement changes in bill by Jul. 1, 2026.
HCD required to adopt guidelines subject to the APA by Jul. 1, 2027.
Regulators
CAL LEG
Entity Types
Bank; MG Orig
Reference
Ch 264, 9/19/2024; Bill, AB1053, 9/10/2024; Citation: CAL LEG 31-2-1-50406;
