Loan program: California Infrastructure and Economic Development Bank.

Existing law, including the California Global Warming Solutions Act of 2006, imposes requirements on local governments for meeting specific environmental quality standards. The Bergeson-Peace Infrastructure and Economic Development Bank Act authorizes the California Infrastructure and Economic Development Bank, governed by a board of directors, to make loans, issue bonds, and provide other financial assistance for various types of infrastructure and economic development projects, among other things. The act establishes the California Infrastructure and Economic Development Bank Fund, a continuously appropriated fund, for support of the bank. This bill would establish within the bank the Local Government Affordable Housing Forgivable Loan Program, and require the bank to make loans to a local government for the development of affordable housing by the local government on terms and conditions the bank deems in the best interests of the state. The bill would define terms for its purposes. The bill would excuse a local government from being required to repay either half or all of the principal and interest on a loan if the local government meets specific requirements that include, among others, that at least 75% of the units in the financed affordable housing be affordable to very low income households or extremely low income households, as specified. The bill would require the board to consult with the Strategic Growth Council and the California Housing Finance Agency in determining whether a local government has met these requirements. By expanding the use of the California Infrastructure and Economic Development Bank Fund, a continuously appropriated fund, this bill would make an appropriation.