Multifamily Housing Program: No Place Like Home Program.

(1) Existing law requires the Department of Housing and Community Development to administer various programs intended to promote the development of housing, including the Multifamily Housing Program, pursuant to which the department provides financial assistance in the form of deferred payment loans to pay for the eligible costs of development for specified activities. Under existing law, the principal and accumulated interest of a loan issued under the Multifamily Housing Program is due and payable upon the completion of the term of the loan. Existing law prohibits the amount of the required loan payments from exceeding 0.42% per annum for the first 30 years of the loan term. This bill would prohibit, for the first 30 years of the loan term, the amount of the required loan payments from exceeding 0.42% per annum or $260 per assisted unit, whichever is less. The bill would authorize the department to adjust the $260 cap for inflation based on the California Consumer Price Index, as specified. (2) Existing law, known as the No Place Like Home Program, requires the Department of Housing and Community Development to award $2,000,000,000 among counties to finance capital costs, including, but not limited to, acquisition, design, construction, rehabilitation, or preservation, and to capitalize operating reserves, of permanent supportive housing for the target population, as specified. Existing law establishes the No Place Like Home Fund, requires specified moneys to be deposited in the fund, and continuously appropriates moneys in the fund for the program. Existing law requires loans for capital costs made by the department under the program to be in the form of secured deferred payment loans to pay for the eligible costs of development. Existing law prohibits the amount of the required loan payments from exceeding 0.42% per annum for the first 15 years of the loan term. This bill would prohibit, for the first 15 years of the loan term, the amount of the required loan payments from exceeding 0.42% per annum or $260 per assisted unit, whichever is less. The bill would authorize the department to adjust the $260 cap for inflation based on the California Consumer Price Index, as specified. The No Place Like Home Program was ratified and amended by the No Place Like Home Act of 2018, approved by the voters as Proposition 2 at the November 6, 2018, statewide general election. Existing law authorizes the Legislature to amend Proposition 2 by a 23 vote, so long as the amendment is consistent with and furthers the intent of that measure. The bill would state the finding of the Legislature that these provisions are consistent with, and further the intent of, the No Place Like Home Act of 2018.