Existing law establishes the Department of Housing and Community Development and requires it to administer various programs intended to promote the development of housing, as specified, 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 the department to take prescribed action, including authorizing the transfer of excess reserves or excess operating income, as defined, from one rental housing development to another rental housing development with the same owner, as specified, and waiving payment of residual receipts or minimum annual loan payments, as provided.

SENATE COMMITTEE ON HOUSING

Senator Aisha Wahab, Chair

2025 - 2026 Regular

Bill No: AB 913 Hearing Date: 6/24/25

SUBJECT: Housing programs: financing

DIGEST: This bill authorizes the state Department of Housing and Community Development (HCD) to authorize the transfer of excess reserves or operating income from one rental housing development to another, provided both are subject to an HCD regulatory agreement and both are owned by the same sponsor.

ANALYSIS:

Existing law:

1. Allows HCD to approve an extension of an HCD loan, the reinstatement of a qualifying unpaid matured loan, the subordination of an HCD loan to new debt, or an investment of tax credit equity under various older HCD rental housing finance programs. Allows this approval if HCD determines that the project will have, after rehabilitation or repairs, a potential remaining useful life equal to or greater than the term of the restructured loan.
2. Allows HCD to charge a monitoring and transaction fee to cover its costs for loan extensions and transactions and requires developer fee limitations to be consistent with specified laws and regulations, including those set by the California Tax Credit Allocation Committee (CTCAC).
3. Provides that HCD may subordinate its loan to refinance existing senior debt only as necessary for project feasibility and to reimburse borrower advances for predevelopment costs, recent capital improvements, and recent operating deficits.
4. Includes, in Multifamily Housing Program (MHP) Regulations, issued by HCD, the following prohibitions:
   1. Prohibits a property owner from encumbering or pledging Rental Housing Development, or any interest therein or portion thereof, or allow any lien, charge, or assessment against the Rental Housing Development without the prior written approval of HCD.
   2. No loan may be paid-off prior to maturity without the prior written consent of HCD in its sole discretion. This consent shall be subject to conditions deemed necessary to ensure compliance with MHP requirements.

This bill:

1. Authorizes HCD, notwithstanding any other law and to improve the fiscal integrity of a development financed with HCD resources, to take the following actions:
   1. Authorize the transfer of excess reserves or excess operating income from one rental housing development to another, provided both are subject to an HCD regulatory agreement and both are owned by the same sponsor or affiliate.
   2. Waive payment of residual receipts or minimum annual loan payments required under the regulatory agreement.
2. Defines “excess operating income” as the annual net operating income in excess of the amount that is 1.15 times the sum total of required annual debt service payments, provided the owner can demonstrate sufficient net operating income over a 15-year period.
3. Defines “excess reserves” as replacement reserves, operating reserves, or transition reserves no longer required by, or in excess of the minimum amount required by, the HCD regulatory agreement.

Background

Affordable Housing Finance. The state finances affordable multifamily rental housing using a combination of loans, tax credits, and private activity bonds. Unlike market rate housing, affordable housing does not have the cash-flow from rents to support traditional financing.

Affordable housing is provided to tenants whose household income is below the area median income (AMI). To qualify, very low-income tenants must make 60% or less of the AMI and lower-income tenants must make only 80% or less of AMI. Tenants in affordable housing are only required to pay 30% of their income toward rent, so the state needs to provide enough long-term subsidy to reduce the overall debt service on a development. HCD loans serve as the permanent financing that comes in once a development is complete to take out the predevelopment and construction loans a developer took on to construct the development. HCD loans are secured with a lien in first position on the property. Developments are also subject to a 55-year recorded regulatory agreement which runs with the project. If a developer pays off an HCD loan before the covenants expire, the regulatory agreement is not extinguished and the developer must continue to provide the units at an affordability rent for the length of the regulatory agreement to lower-income tenants.

Comments

1. Author statement. “Housing is a basic need, and the lack of affordable housing is the largest contributor to homelessness. To keep up with the pace of housing needs, the California Department of Housing and Community Development (HCD) estimates that California must plan to develop 2.5 million homes over the next eight years. Affordable housing is important to lift families out of poverty and to provide stability. With Assembly Bill 913, the Department of Housing and Community Development (HCD) may allow affordable housing developers the flexibility to utilize funds from one affordable housing project towards another project that is financially at-risk. This bill is timely as housing developers face rising costs of materials, construction and insurance coverage. This innovative housing finance approach will ensure that all developments in a portfolio are fiscally sound.”
2. MHP. While this bill would affect all HCD-funded multifamily developments, MHP is HCD’s flagship rental housing program and primary funding source. MHP funds the new construction, rehabilitation, and preservation of permanent and transitional rental homes for lower income households through low-interest, long-term deferred loans to local governments, non-profit developers, and for-profit developers. Rental units are targeted to households up to 60% AMI, with priority given to 30% AMI.
3. HCD prepayments and equity withdrawals. Developers with older HCD loans would like the option to sell developments with MHP loans and pay off the loans or to refinance the loans to take cash out to pay developer fees, rehabilitate a development, or re-deploy the funds to develop more affordable housing. This could generate millions of dollars to create new affordable housing. MHP regulations suggest that HCD has some discretion to allow for prepayment and limited ability to allow for a refinance of a loan. HCD may allow refinancing of existing liens or additional financing secured by the development maintain or improve the fiscal integrity of the project, to maintain affordable rents, or to decrease rents. HCD can also agree to a MHP loan being paid off prior to maturity.

Earlier this year, this committee approved SB 686 (Reyes, 2025), which would authorize HCD to approve the payoff of an HCD loan in whole or in part, prior to the end of its term, and the extraction of equity from a development for purposes approved by HCD. A similar proposal was included in the Governor’s January budget.

1. Funding flexibility. Affordable housing projects often face rising costs, such increased insurance costs or loss of rental income. This bill would allow HCD to authorize a transfer of funds from the excess reserves or operating income of one project, to another project under the same sponsor. It would also allow HCD to waive any loan payment of residual receipts or minimum loan payments. The sponsors note that this would enable a developer to help keep a struggling project afloat by transferring funds to it from a project with positive cash flow; in turn, HCD could reduce the residual payments to the project with positive cash flow, in order to help ensure its ongoing fiscal integrity.

Related/Prior Legislation

SB 686 (Reyes, 2025) -- authorizes HCD to approve the payoff of an HCD loan in whole or part, prior to the end of its term, and the extraction of equity from a development for purposes approved by HCD. This bill is pending hearing in the Assembly Housing and Community Development Committee.

AB 2638 (Ward, 2024) – would have authorized HCD to approve the payoff of an HCD loan in whole or part, prior to the end of its term, and the extraction of equity from a development for purposes approved by HCD. This bill was held on the Senate Appropriations Committee suspense file.

AB 515 (Ward, 2023) – would have authorized HCD to approve the payoff of an HCD loan in whole or part, prior to the end of its term, and the extraction of equity from a development for purposes approved by HCD. This bill was held on the Senate Appropriations Committee suspense file.

AB 578 (Berman, 2023) – would have revised the minimum annual loan payment developers must pay to cover the cost of project monitoring for the Multifamily Housing Program (MHP) and the No Place Like Home (NPLH) Program administered by HCD. This bill was held on the Senate Appropriations Committee suspense file.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

POSITIONS: (Communicated to the committee before 5:00 p.m. on Wednesday, June 18, 2025.)

SUPPORT:

Abode Services
California Housing Consortium
California Housing Partnership (Sponsor)
City and County of San Francisco
Coachella Valley Housing Coalition
East Bay Housing Organizations
Enterprise Community Partners, Inc. (Sponsor)
Housing California
Little Tokyo Service Center
Southern California Association of Nonprofit Housing
Supportive Housing Alliance

OPPOSITION:

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 913

Author:(Celeste Rodriguez)

As Introduced Ver:February 19, 2025

Majority vote

SUMMARY

Authorizes the Department of Housing and Community Development (HCD) to take specified actions to improve the fiscal integrity of an affordable housing development financed with department resources.

Major Provisions

1. Authorizes the transfer of excess reserves or excess operating income from one rental housing development, subject to a HCD regulatory agreement, to another rental housing development, subject to a department regulatory agreement, that is owned by the same sponsor or affiliate.
2. Waives payment of residual receipts or minimum annual loan payments required under a HCD regulatory agreement.
3. Includes the following definitions:
4. "Excess operating income" means the annual net operating income in excess of the amount that is 1.15 times the sum total of required annual debt service payments, provided that the owner can demonstrate sufficient net operating income over a 15-year period; and
5. "Excess reserves" means replacement reserves, operating reserves, or transition reserves no longer required by, or in excess of the minimum amount required by, the department regulatory agreement.

COMMENTS

Affordable Housing Finance: The state finances affordable multifamily rental housing using a combination of loans, tax credits, and private activity bonds. Unlike market rate housing, affordable housing does not have the cash-flow from rents to support traditional financing. Affordable housing is provided to tenants whose household income is below the area median income (AMI). To qualify, very low-income tenants must make 60% or less of the AMI and lower-income tenants must make only 80% or less of AMI. Tenants in affordable housing are only required to pay 30% of their income toward rent, so the state provides enough long term subsidy to reduce the overall debt service on a development. HCD loans serve as the permanent financing that comes in once a development is complete to take out the predevelopment and construction loans a developer took on to construct the development. HCD loans are secured with a lien in first position on the property. Developments are also subject to a 55-year recorded regulatory agreement which runs with the project. If a developer pays off an HCD loan before the covenants expire, the regulatory agreement is not extinguished and the developer must continue to provide the units at an affordability rent for the length of the regulatory agreement to lower-income tenants.

Challenges Facing Affordable Housing Developments: Due to several factors including the depletion of operating reserves resulting from the COVID-19 rent moratorium and unprecedented increases in insurance rates, affordable housing developments are facing financial challenges. Enterprise Community Partners recently conducted a survey of 130 affordable properties and found that on average the developments were experiencing insurance cost increases of 70%, with some providers reporting increases up to 500%. Because rents are capped, these properties have fewer options to cover these increases. In some cases, the situation is made worse because the project's operating reserves have not recovered from the rent moratoriums. Due to these financial pressures some properties are at risk of foreclosing or becoming market-rate developments, which would eliminate vital affordable housing units.

Purpose of This Bill: To address the fiscal integrity of housing developments financed by HCD, this bill would give the department authority to allow for the transfer of excess reserves or operating income from one rental housing development owned by the same developer. HCD could also waive any loans payment of residual receipts or minimum annual loan payments to ensure the financial integrity of developments. Previous bills, AB 2638 (Ward) of 2024, AB 515 (Ward) of 2023, and AB 578 (Berman) of 2023 have attempted to address a similar issue. Those bills allowed for the early payoff of an HCD loan, if approved by HCD. Those funds could be used to develop a new project. The Administration has published Trailer Bill Language (TBL) to facilitate this process this budget cycle. This bill addresses a different issue in that it would allow for the transfer of excess reserves or operating income between developments with HCD financing, to alleviate financial challenges from increased insurance costs or loss of rental income, for example.

According to the Author

"Housing is a basic need, and the lack of affordable housing is the largest contributor to homelessness. To keep up with the pace of housing needs, the California Department of Housing and Community Development (HCD) estimates that California must plan to develop 2.5 million homes over the next eight years. Affordable housing is important to lift families out of poverty and to provide stability.

With Assembly Bill 913, the Department of Housing and Community Development (HCD) may allow affordable housing developers the flexibility to utilize funds from one affordable housing project towards another project that is financially at-risk. This bill is timely as housing developers face rising costs of materials, construction and insurance coverage. This innovative housing finance approach will ensure that all developments in a portfolio are fiscally sound."

Arguments in Support

According to the sponsor, the California Housing Partnership, "Affordable housing properties, unlike market-rate developments, are contractually bound to keep rents affordable to their area-median income (AMI) for 55 years and cannot balance a severe increase in operational costs with rent increases. The extended rent moratorium that was enacted in 2020 forced many developments to dip into their operating reserves, a loss that many are still trying to recoup. This has only been compounded by skyrocketing insurance rates that could not have been budgeted for upon initial construction - with some developers reporting 500% increases in their quotes. Considering the narrow margins affordable housing developments generally already operate within, this presents a huge risk to fiscal solvency and stability. Without action, thousands of California's most vulnerable households are at risk. AB 913 helps create pathways to stabilize properties that are over-burdened by these costs."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Committee on Appropriations,

Because implementation of this bill's provisions is discretionary, there are no immediate costs to HCD. However, if HCD exercises this discretion, HCD would incur ongoing General Fund costs of an unknown amount, but likely in the low- to mid-hundreds of thousands of dollars annually for additional staff. The workload increase will vary depending on the number of transactions, the complexity of ownership structures, the financial condition of the involved projects, and the need to evaluate impacts on existing regulatory agreements, affordability covenants, and layering of other financing sources. In addition, any monitoring fees waived by HCD under this bill will reduce income to HCD and may require other resources to cover HCD expenses.

HCD notes, as with other similar programmatic structures, having the authority to establish a transaction or administrative fee would help recover costs associated with review, approval, and compliance monitoring of portfolio transactions.

VOTES

ASM HOUSING AND COMMUNITY DEVELOPMENT: 9-0-3

YES: Haney, Patterson, Ávila Farías, Caloza, Garcia, Kalra, Lee, Quirk-Silva, Wicks

ABS, ABST OR NV: Ta, Tangipa, Wilson

ASM APPROPRIATIONS: 11-0-4

YES: Wicks, Arambula, Calderon, Caloza, Elhawary, Fong, Mark González, Hart, Pacheco, Pellerin, Solache

ABS, ABST OR NV: Sanchez, Dixon, Ta, Tangipa

UPDATED

VERSION: February 19, 2025

CONSULTANT: Lisa Engel / H. & C.D. / (916) 319-2085 FN: 0000609

Date of Hearing: May 14, 2025

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 913

Author:(Celeste Rodriguez) – As Introduced Ver:February 19, 2025

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill authorizes the Department of Housing and Community Development (HCD) to allow the transfer of excess reserves or excess operating income from one rental housing development to another rental housing development owned by the same developer.

Specifically, this bill:

1. Authorizes HCD, at its sole discretion, to improve the fiscal integrity of a development financed with department resources, to take the following actions:
2. Authorize the transfer of excess reserves or excess operating income from one rental housing development subject to an HCD regulatory agreement, to another rental housing development subject to an HCD regulatory agreement that is owned by the same sponsor or affiliate.
3. Waive residual receipts payments or minimum annual loan payments required under a HCD regulatory agreement.
4. Includes the following definitions:
5. “Excess operating income” means the annual net operating income in excess of the amount that is 1.15 times the sum total of required annual debt service payments, provided the owner can demonstrate sufficient net operating income over a 15-year period.
6. “Excess reserves” means replacement reserves, operating reserves, or transition reserves no longer required by, or in excess of the minimum amount required by, the HCD regulatory agreement.

FISCAL EFFECT:

Because implementation of this bill’s provisions is discretionary, there are no immediate costs to HCD. However, if HCD exercises this discretion, HCD would incur ongoing General Fund costs of an unknown amount, but likely in the low- to mid-hundreds of thousands of dollars annually for additional staff. The workload increase will vary depending on the number of transactions, the complexity of ownership structures, the financial condition of the involved projects, and the need to evaluate impacts on existing regulatory agreements, affordability covenants, and layering of other financing sources. In addition, any monitoring fees waived by HCD under this bill will reduce income to HCD and may require other resources to cover HCD expenses.

HCD notes, as with other similar programmatic structures, having the authority to establish a transaction or administrative fee would help recover costs associated with review, approval, and compliance monitoring of portfolio transactions.

COMMENTS:

1. Purpose. According to the author:

Affordable housing is important to lift families out of poverty and to provide stability. With [this bill], HCD may allow affordable housing developers the flexibility to utilize funds from one affordable housing project towards another project that is financially at-risk. This bill is timely as housing developers face rising costs of materials, construction and insurance coverage. This innovative housing finance approach will ensure that all developments in a portfolio are fiscally sound.

1. Background. The state finances affordable multifamily rental housing using a combination of loans, tax credits, and private activity bonds. Unlike market rate housing, affordable housing does not have the cash-flow from rents to support traditional financing. Due to several factors including the depletion of operating reserves resulting from the COVID-19 rent moratorium and unprecedented increases in insurance rates, affordable housing developments are facing financial challenges. According to the sponsor of this bill, the California Housing Partnership:

Affordable housing properties, unlike market-rate developments, are contractually bound to keep rents affordable to their area-median income (AMI) for 55 years and cannot balance a severe increase in operational costs with rent increases. The extended rent moratorium that was enacted in 2020 forced many developments to dip into their operating reserves, a loss that many are still trying to recoup. This has only been compounded by skyrocketing insurance rates that could not have been budgeted for upon initial construction - with some developers reporting 500% increases in their quotes. Considering the narrow margins affordable housing developments generally already operate within, this presents a huge risk to fiscal solvency and stability. Without action, thousands of California’s most vulnerable households are at risk.

To ensure the fiscal integrity of housing developments financed by HCD, this bill gives HCD the authority to allow transfers of excess reserves or excess operating income between rental housing developments under the same developer. This allows developers with HCD loans and net income to help their HCD-funded properties that need cash flow. HCD may also waive residual receipts payments and minimum annual loan payments for any HCD-funded loan.

Advocates assert this bill provides important flexibility and tools to ensure that California maintains its vital supply of existing affordable housing.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: April 30, 2025

ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT

Matt Haney, Chair

ABPCA Bill Id:AB 913 (

Author:Celeste Rodriguez) – As Introduced Ver:February 19, 2025

SUBJECT: Housing programs: financing

SUMMARY: Authorizes the Department of Housing and Community Development (HCD) to take specified actions to improve the fiscal integrity of an affordable housing development financed with department resources. Specifically, this bill:

1. Authorizes the transfer of excess reserves or excess operating income from one rental housing development, subject to a HCD regulatory agreement, to another rental housing development, subject to a department regulatory agreement, that is owned by the same sponsor or affiliate.
2. Waives payment of residual receipts or minimum annual loan payments required under a HCD regulatory agreement.
3. Includes the following definitions:
4. “Excess operating income” means the annual net operating income in excess of the amount that is 1.15 times the sum total of required annual debt service payments, provided that the owner can demonstrate sufficient net operating income over a 15-year period; and
5. “Excess reserves” means replacement reserves, operating reserves, or transition reserves no longer required by, or in excess of the minimum amount required by, the department regulatory agreement.

EXISTING LAW:

1. Allows HCD to approve an extension of a department loan, the reinstatement of a qualifying unpaid matured loan, the subordination of a department loan to new debt, or an investment of tax credit equity under various older HCD rental housing finance programs. (Health and Safety Code (HSC) Section 50560)
2. Allows HCD to approve an extension of a loan, the reinstatement of a qualifying unpaid matured loan, or the subordination of an HCD loan to new debt or an investment of tax credit equity if it determines that the project will have after rehabilitation of repairs, a potential remaining useful life equal to or greater than the term of the restructured loan. (HSC 50560)
3. Provides that HCD may subordinate its loan to refinance existing senior debt only as necessary for project feasibility and to reimburse borrower advances for predevelopment costs, recent capital improvements, and recent operating deficits. (HSC 50560)
4. Multi-family Housing Program (MHP) Regulations include the following prohibitions:
5. Prohibits the Sponsor from encumbering, pledging, or hypothecating the Rental Housing Development, or any interest therein or portion thereof, or allow any lien, charge, or assessment against the Rental Housing Development without the prior written approval of HCD. HCD will not permit refinancing of existing liens or additional financing secured by the Rental Housing Development except to the extent necessary to maintain or improve the Fiscal Integrity of the Project, to maintain Affordable Rents, or to decrease Rents and for no other purpose, including, but not limited to, cash payments to the Sponsor, repayment of general partner loans or of limited partner loans, or for limited partner buyouts. Notwithstanding the general provisions in UMR Section 8308(g), this special condition controls, in that no MHP reserve balance can fund a limited partner buyout or exit.
6. No loan may be paid off prior to maturity without the prior written consent of the
   Department in its sole discretion, which consent shall be subject to conditions deemed
   necessary to ensure compliance with the Program requirements. All of the loan
   documents, including the Regulatory Agreement and Deed of Trust, shall continue in
   full force and effect notwithstanding any prepayment, in whole or in part, or the loan. (California Code of Regulations (CCR), Title 25, Subchapter 4, MHP Regulations 7322 (d)-(e))

FISCAL EFFECT: Unknown.

COMMENTS:

Author’s Statement: According to the author, “Housing is a basic need, and the lack of affordable housing is the largest contributor to homelessness. To keep up with the pace of housing needs, the California Department of Housing and Community Development (HCD) estimates that California must plan to develop 2.5 million homes over the next eight years. Affordable housing is important to lift families out of poverty and to provide stability.

With Assembly Bill 913, the Department of Housing and Community Development (HCD) may allow affordable housing developers the flexibility to utilize funds from one affordable housing project towards another project that is financially at-risk. This bill is timely as housing developers face rising costs of materials, construction and insurance coverage. This innovative housing finance approach will ensure that all developments in a portfolio are fiscally sound.”

Affordable Housing Finance: The state finances affordable multifamily rental housing using a combination of loans, tax credits, and private activity bonds. Unlike market rate housing, affordable housing does not have the cash-flow from rents to support traditional financing. Affordable housing is provided to tenants whose household income is below the area median income (AMI). To qualify, very low-income tenants must make 60% or less of the AMI and lower-income tenants must make only 80% or less of AMI. Tenants in affordable housing are only required to pay 30% of their income toward rent, so the state provides enough long term subsidy to reduce the overall debt service on a development. HCD loans serve as the permanent financing that comes in once a development is complete to take out the predevelopment and construction loans a developer took on to construct the development. HCD loans are secured with a lien in first position on the property. Developments are also subject to a 55-year recorded regulatory agreement which runs with the project. If a developer pays off an HCD loan before the covenants expire, the regulatory agreement is not extinguished and the developer must continue to provide the units at an affordability rent for the length of the regulatory agreement to lower-income tenants.

Challenges Facing Affordable Housing Developments: Due to several factors including the depletion of operating reserves resulting from the COVID-19 rent moratorium and unprecedented increases in insurance rates, affordable housing developments are facing financial challenges. Enterprise Community Partners recently conducted a survey of 130 affordable properties and found that on average the developments were experiencing insurance cost increases of 70%, with some providers reporting increases up to 500%. Because rents are capped, these properties have fewer options to cover these increases. In some cases, the situation is made worse because the project’s operating reserves have not recovered from the rent moratoriums. Due to these financial pressures some properties are at risk of foreclosing or becoming market-rate developments, which would eliminate vital affordable housing units.

Purpose of This Bill: To address the fiscal integrity of housing developments financed by HCD, this bill would give the department authority to allow for the transfer of excess reserves or operating income from one rental housing development owned by the same developer. HCD could also waive any loans payment of residual receipts or minimum annual loan payments to ensure the financial integrity of developments. Previous bills, AB 2638 (Ward) (2024), AB 515 (Ward) (2023), and AB 578 (Berman) (2023) have attempted to address a similar issue. Those bills allowed for the early payoff of an HCD loan, if approved by HCD. Those funds could be used to develop a new project. The Administration has published Trailer Bill Language (TBL) to facilitate this process this budget cycle. This bill addresses a different issue in that it would allow for the transfer of excess reserves or operating income between developments with HCD financing, to alleviate financial challenges from increased insurance costs or loss of rental income, for example.

Arguments in Support: According to the sponsor, the California Housing Partnership, “Affordable housing properties, unlike market-rate developments, are contractually bound to keep rents affordable to their area-median income (AMI) for 55 years and cannot balance a severe increase in operational costs with rent increases. The extended rent moratorium that was enacted in 2020 forced many developments to dip into their operating reserves, a loss that many are still trying to recoup. This has only been compounded by skyrocketing insurance rates that could not have been budgeted for upon initial construction - with some developers reporting 500% increases in their quotes. Considering the narrow margins affordable housing developments generally already operate within, this presents a huge risk to fiscal solvency and stability. Without action, thousands of California’s most vulnerable households are at risk. AB 913 helps create pathways to stabilize properties that are over-burdened by these costs.”

Arguments in Opposition: None on file.

Related Legislation:

AB 2638 (Ward) of 2024 would have authorized HCD to approve the payoff of an HCD loan in whole or part, prior to the end of its term, and the extraction of equity from a development for purposes approved by HCD. This bill was held in Senate Appropriations Committee.

AB 515 (Ward) of 2023 would have allowed for the full or partial payoff of a loan prior to the end of its term and extraction of equity from a development and authorized HCD to waive certain requirements in the regulatory agreement if a loan is paid off. Would have also capped developer fees. This bill was held in Senate Appropriations Committee.

AB 578 (Berman) of 2023 would have capped monitoring fees for developments funded with HCD loans. This bill was held in Senate Appropriations Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

California Housing Partnership (Sponsor)

Enterprise Community Partners (Sponsor)

California Coalition for Rural Housing

California Housing Consortium

City and County of San Francisco

City of Oakland Mayor Kevin Jenkins

East Bay Asian Local Development Corporation

East Bay Housing Organizations

Housing California

Little Tokyo Service Center

Resources for Community Development

Southern California Association of Nonprofit Housing

Supportive Housing Alliance

The John Stewart Company

Opposition

None on file.

Analysis Prepared by: Lisa Engel / H. & C.D. / (916) 319-2085