Multifamily Housing Program: supportive housing: capitalized operating reserves.

Existing law establishes the Department of Housing and Community Development and requires it 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 of specified types of housing projects. Existing law establishes eligible cost categories for the Multifamily Housing Program, which include capitalized reserves for replacement and operation. In this regard, existing law authorizes the department to allow capitalized operating reserves to be used for rent subsidies for assisted units, as specified. This bill would specify that the department may allow capitalized operating reserves to be used for eligible projects, and that assisted units may include, but not be limited to, supportive housing units, as defined. To determine project eligibility for capitalized operating reserves, the bill would authorize the department to consider specified factors, including the availability of funds and the individual financial needs of the project. The bill would require the department to offer capitalized operating reserves to supportive housing units after developers have sought capitalized reserves from other potential funding sources.