California Pollution Control Financing Authority: community development financial institutions: grant program.

Existing law, the California Pollution Control Financing Authority Act, establishes the California Pollution Control Financing Authority (authority) , with specified powers and duties, and authorizes the authority to approve financing for projects or pollution control facilities to prevent or reduce environmental pollution. Existing federal law establishes the Capital Magnet Fund and makes moneys in that fund available to the United States Secretary of the Treasury to carry out a competitive grant program to attract private capital for, and increase investment in, certain affordable housing and economic development projects by providing grants, as provided, to Treasury-certified community development financial institutions or nonprofit organizations that meet specified criteria. Existing federal law, the federal Community Development Financial Institutions Program, provides financial and technical assistance to specified recipients to enhance their ability to provide specified financial products, financial services, and development services to, and in, their target markets in order to promote economic revitalization and community development through investment in, and assistance to, community development financial institutions, as defined and specified. This bill would authorize the authority to establish the California Investment and Innovation Program for the purpose of providing grants to enhance the capacity of specified community development financial institutions to provide technical assistance and capital access to economically disadvantaged communities in the state. The bill would establish the California Investment and Innovation Fund and, upon appropriation and the authority's establishment of the program, require the authority to award grants to eligible applicants, defined as community development financial institutions that meet specified criteria under the program, as provided. The bill would require eligible applicants, prior to receiving any grant funds, to enter into a grant agreement with the authority containing specified requirements. The bill would specify authorized uses of grant funds, including increasing working capital for the purpose of funding services and operations that contribute to the overall community development mission of the eligible applicant. The bill would require the authority to adopt, amend, or repeal guidelines for the operation of the program, as specified. The bill would make the authority's duties under these provisions contingent on the authority establishing the program. The bill would also, beginning on January 1, 2024, change the name of the authority to the California Community Development Financing Authority, as specified.