Bill Text: CA AB523 | 2013-2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Department of Housing and Community Development: loans.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2014-09-19 - Chaptered by Secretary of State - Chapter 445, Statutes of 2014. [AB523 Detail]

Download: California-2013-AB523-Introduced.html

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BILL NUMBER: AB 523	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Members Ammiano and Brown
   (Principal coauthor: Senator Leno)

                        FEBRUARY 20, 2013

   An act to add Section 50406.7 to the Health and Safety Code,
relating to housing.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 523, as introduced, Ammiano. Department of Housing and
Community Development: loans.
   Existing law authorizes the Department of Housing and Community
Development to make advance payments to eligible borrowers and
grantees under certain loan or grant programs for housing, if the
department makes specified determinations.
   This bill would additionally authorize the department to reduce
the interest rate on any loan issued by the department to a rental
housing development to as low as 0% if the development meets
specified requirements.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 50406.7 is added to the Health and Safety Code,
to read:
   50406.7.  Notwithstanding any other law, the department may reduce
the interest rate on any loan issued by the department to a rental
housing development to as low as 0 percent if the development meets
all of the following requirements:
   (a) The development has no other debt with regularly scheduled or
amortizing debt service payments.
   (b) The development will utilize low-income housing tax credits.
   (c) The sponsor provides evidence acceptable to the department
that demonstrates that the loan issued by the department is not
eligible to be treated as debt for federal or state low-income
housing tax credit purposes without a reduction in the interest rate
of the loan.