Amended  IN  Assembly  March 16, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 515

Introduced by Assembly Member Ward

February 07, 2023

An act to amend Section 66451 of the Government Code, relating to land use. An act to add Section 50406.4 to the Health and Safety Code, relating to housing.


LEGISLATIVE COUNSEL'S DIGEST


AB 515, as amended, Ward. Land use: subdivisions: procedure. Housing programs: loans: prepayment.
Existing law establishes the Department of Housing and Community Development and requires it to administer various programs intended to promote the development of housing and to provide housing assistance and home loans, including the Multifamily Housing Program, pursuant to which the department provides assistance in the form of deferred payment loans to pay for the eligible costs of development of specified types of housing. 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 require the department to allow prepayment of any loans related to housing or housing projects administered by the department if specified conditions are met, including that refinancing is underwritten with a debt-service coverage ratio of 1.15 and demonstrates positive cash flow for 15 consecutive years.

Existing law, the Subdivision Map Act, provides procedures that govern the processing, approval, conditional approval, or disapproval and filing of tentative, final, and parcel maps, and the modification thereof. Existing law authorizes local ordinances to modify the procedures, as specified.

This bill would make nonsubstantive changes to that law.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 50406.4 is added to the Health and Safety Code, to read:

50406.4.
 Notwithstanding any other law, and to the extent permitted under federal law and the California Constitution, the department shall allow prepayment of any loans related to housing or housing projects administered by the department if all of the following conditions are met:
(a) Refinancing is underwritten with a debt-service coverage ratio of 1.15 and demonstrates positive cash flow for 15 consecutive years.
(b) Any new debt is subordinate to the department’s lien, as applicable.
(c) The department’s regulatory agreement remains in place for the project for its remaining term.
(d) The department continues to receive monitoring fees to ensure compliance with the existing regulatory agreement.

SECTION 1.Section 66451 of the Government Code is amended to read:
66451.

The procedures set forth in this chapter shall govern the processing, approval, conditional approval, or disapproval and filing of tentative, final, and parcel maps and the modification thereof. Local ordinances may modify the procedures to the extent authorized by this chapter.