Community Anti-Displacement and Preservation Program.

The deadline for the department to adopt program regulations was extended from January 1, 2028 to July 1, 2028, giving the department six additional months to finalize rules before the program must be operational.

Section 50583(b)(2) changed the cap on loan and grant amounts. The old language limited funds to 'the cost of acquisition plus the cost of rehabilitation and other related transaction costs, including, but not limited to, closing costs and carrying costs during rehabilitation.' The enrolled version replaces this with 'the cost of acquisition plus the cost of rehabilitation and other reasonable soft costs,' which is a broader and less specific standard that could encompass a wider range of project expenses.

Section 50584(a)(4) simplified the fund allocation criteria language. The old version stated the department shall allocate funds 'in a manner that takes into consideration local through an assessment of criteria' and listed 'Local affordable housing needs and in the geographic equity area served by the administering entity.' The enrolled version cleans this to 'through an assessment of criteria' with 'Local affordable housing needs in the geographic area served by the administering entity,' removing redundant phrasing.

Minor terminology cleanups throughout, including removing 'private sector entity' before 'program manager' in Section 50582(a)(2), removing a duplicated 'request' in Section 50584(a)(1), and removing redundant cross-reference language in Section 50584(b).

The deadline for the department to adopt program regulations was moved from January 1, 2028 to July 1, 2028, giving the department six additional months.

Maximum loan term in the program manager selection objectives was increased from 15 years to 30 years, allowing for longer-term financing of affordable housing projects.

The cap on what loans and grants can cover was expanded from 'cost of acquisition plus cost of rehabilitation' to also include 'other related transaction costs, including closing costs and carrying costs during rehabilitation,' making more project costs eligible for program funding.

Fund allocation criteria in Section 50584(a)(4) were expanded from a general reference to 'local affordable housing needs and geographic equity' to a specific three-part assessment: local affordable housing needs in the area served, low-income households in the area served, and geographic equity across the state.

New language was added clarifying that administrative costs for regional housing entities and the program manager shall not be sourced from moneys in the Community Anti-Displacement and Preservation Fund that are designated for the department's own administrative expenses under Section 50581(a)(2).

A new annual reporting requirement (Section 50583(e)) was added requiring the program manager to report statewide and jurisdiction-specific funding activity, performance metrics, and tenant outcomes to the department for the duration of the agreement.

The mechanism for issuing funds to regional housing entities was changed from a simple 'upon request' process to one that must go through 'a solicitation or other process determined by the department,' adding a competitive or structured selection step.

Throughout Section 50584, references to 'local public entities' were replaced with 'regional housing entities,' narrowing the class of entities eligible to receive delegated program funds from any local public entity to specifically defined regional housing entities.

A new definition of 'program manager' was added (Section 50580(b)(7)), defining it as a private sector entity or consortium selected by the department to manage the program.

A new definition of 'administering entity' is added, meaning the program manager or a regional housing entity administering funds allocated by the department. A new definition of 'regional housing entity' is also added, covering the Bay Area Housing Finance Authority, the Los Angeles County Affordable Housing Solutions Agency, and locally created regional housing finance authorities under the Regional Housing Finance Act.

The program now authorizes both loans and grants (previously only loans). This change appears throughout the bill in sections 50582, 50583, 50584, and 50586, expanding the types of financial instruments available to eligible borrowers.

A new paragraph (7) in Section 50583(b) allows loans and grants to finance only a portion of units in a property, with only the funded units subject to program requirements.

Section 50584 is expanded to include 'regional housing entities' alongside 'local public entities' as recipients of program funds for local implementation. The section now also specifies that allocated funds can be used for loans or grants, capitalized operating subsidy reserves, and administrative costs not to exceed 5 percent.

The maximum loan term is doubled from 15 years to 30 years in Section 50582(c)(1), allowing borrowers to keep program financing for a much longer period.

A new subdivision (c) in Section 50581 requires that funds with a specified allocation timeline be allocated within that timeline following the initial Notice of Funding Availability, and that an administering entity issue its initial Notice of Funding Availability on or before one year after receiving funds from the department.

A new paragraph (4) in Section 50584(a) requires the department to allocate funds to administering entities in a manner that takes into consideration local affordable housing needs and geographic equity.

Section 50583(c)(1)(A) changes the affordability restriction trigger from 'at least 55 years from the date of the loan closing' to '55 years from the date of the loan closing or disbursement of grant funds,' removing the word 'at least' and extending the clock start to grant disbursements.

Section 50580(c) now requires the department to adopt regulations for the operation of the program on or before January 1, 2028. Previously there was no deadline.

Section 50583(b)(2) expands what loans or grants can cover: they now may include 'other related transaction costs, including, but not limited to, closing costs and carrying costs during rehabilitation' in addition to acquisition and rehabilitation costs.

Section 50583(b)(3) changes the deferred payment requirement from 'deferred interest for the term of the loan' to 'deferred interest and principal payments for the term of the loan,' meaning borrowers funded with department money would not have to make any payments during the loan term.

A new paragraph (6) in Section 50583(b) prohibits an administering entity from disqualifying an applicant solely because the applicant does not yet hold the deed if the applicant is in the process of acquiring the property.

The definition of 'eligible borrower' was simplified. The Senate version required that an eligible borrower be 'an entity whose primary mission includes the development or ownership of housing that is affordable to low-income households and that has demonstrated experience in acquiring, rehabilitating, and operating multifamily housing for the benefit of low-income households,' in addition to fitting one of the listed entity types. The Assembly removed this overarching mission-and-experience requirement, so an entity now qualifies solely by being one of the listed types (nonprofit corporation, community land trust, limited partnership, LLC, limited-equity housing cooperative, or local public entity).

The option to use a 'recorded equity sharing agreement' as the long-term affordability instrument for properties sold to low-income households at an affordable cost was removed. Only a recorded deed restriction of at least 45 years or a community land trust ground lease of 99 years now qualify under Section 50583(c)(2)(A).

The program purpose statement in Section 50580(a) was changed from 'unrestricted housing units' to 'unrestricted housing,' removing the word 'units.' This is a minor clarification that aligns the language with the defined term 'unrestricted housing' used elsewhere in the bill.

New subdivision added to Section 50583 requiring the department to grant funds to the program manager to implement the program, covering three categories: loans or grants, capitalized operating subsidy reserves, and administrative costs. This creates a formal funding flow from the department to the program manager that was not explicit in the introduced version.

New definition of 'capitalized operating subsidy reserve' added - funds set aside before property acquisition to cover the property's operating expenses over time. This is a new financial tool for ensuring long-term affordability.

The eligible borrower definition was restructured. Community land trusts are now explicitly listed as a standalone eligible borrower type (subparagraph B) rather than only referenced through the Revenue and Taxation Code. The nonprofit corporation definition now directly includes requirements that its primary mission include development or ownership of affordable housing for low-income households and that it have demonstrated experience in acquiring, rehabilitating, and operating multifamily housing. Limited partnerships and LLCs must now have a managing partner/member that is either a qualifying nonprofit or a community land trust.

Tenant eviction protection language was narrowed and clarified: previously applied to any household residing 'in the property at the time of its acquisition'; now specifically applies to households residing 'in a property purchased or rehabilitated with funds from the program at the time of its acquisition by an eligible borrower.' This ties the protection more precisely to program-funded transactions.

Local public entity annual reporting requirement expanded from demonstrating developments are 'rented in accordance with' restrictions to 'rented or sold in accordance with' restrictions, covering homeownership projects in addition to rental projects.

Program manager responsibilities expanded to include summarizing program impacts in addition to demonstrating compliance with program regulations.