AB 2166: Federal funding: promoting homeownership.

Under existing law governing the Community Development Block Grant Program, the Department of Housing and Community Development is required to distribute federal funds in the form of grants to eligible cities and counties to provide housing and economic development, principally for persons and families of low or moderate income. Existing law requires all funds made available under the program to be utilized to provide decent housing, a suitable living environment, and expanding economic opportunities, consistent with federal requirements.

This bill would require authorize the Department of Housing and Community Development to prioritize 30% of the federal funding provided under the Community Development Block Grant Program for purposes of promoting homeownership for persons and families of low or moderate income. The bill would also require the department to prioritize at least 10% of program funds for down payment assistance for persons and families of low or moderate income. assistance. The bill would provide that these requirements be implemented only to the extent that they are consistent with federal requirements.

Existing federal law establishes the HOME Investment Partnership Act, which allocates funds to states and local governments to, among other things, expand the supply of affordable housing. Existing law designates the Department of Housing and Community Development as the state agency responsible for the administration of the states allocation of HOME Investment Partnership Act funds, the provision of technical assistance, and coordination of HOME Investment Partnership Act activities.

This bill would require authorize the Department of Housing and Community Development to prioritize 30% of the federal funding provided under the HOME Investment Partnership Act for purposes of promoting homeownership for persons and families of low or moderate income. homeownership. The bill would provide that this requirement be implemented only to the extent that it is consistent with federal requirements.