Existing law authorizes the Department of Housing and Community Development to make loans under a multifamily housing program, and to reduce the interest rate on any loan issued by the department to a rental housing development to as low as 0.42% per annum, or a rate determined by the department that is sufficient to cover the costs of project monitoring, whichever is greater, if the development meets specified requirements regarding, among other things, debt and household income.
This bill would authorize the department to reduce the interest rate on any loan issued by the department to a rental housing development to only a rate determined by the
department that is sufficient to cover the costs of project monitoring and would revise these the requirements for the reduction to instead require that the rate change increase the feasibility of the proposed project and will further the goals and purpose of the department and the appropriate loan program.
Existing law also authorizes the department to change the current interest rate for any loan for which it receives a loan extension request, associated with an award of federal or state low income housing tax credits made on or after January 1, 2014, to the
applicable federal rate most recently published by the Internal Revenue Service.
This bill instead would provide that the department is authorized to change the current interest rate for any loan issued by the department for which it receives a loan extension request, associated with an award of federal or state low income low-income housing tax credits made on or after January 1, 2014, to the applicable federal rate published by the Internal Revenue Service and in effect at the time of the loan extension and project closing.