Affordable Housing Risk Reduction Program.

Section 50899.18 is entirely deleted. This section had required the department to provide loans or grants to affordable housing providers for two purposes: (1) implementing risk mitigation measures identified through technical assistance, and (2) funding upfront costs such as capital contributions needed to join an alternative risk financing entity.

The requirement that the department consult with the California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee when carrying out program functions is removed.

The provision about providing individual technical assistance and developing broadly accessible tools (training, best practice guides) changes from 'shall' to 'may,' making these activities discretionary rather than mandatory for the department or its consultants.

A standalone general contracting authority provision ('the department may enter into and perform all necessary contracts') is removed, though the specific authority to contract with third-party consultants for technical assistance remains.

The phrase 'Upon appropriation by the Legislature for purposes of the program' was removed from Section 50899.16(a). The department's obligation to develop technical assistance is no longer explicitly conditioned on a separate legislative appropriation, making it an unconditional statutory duty.

Section 50899.17 was deleted in its entirety. This section had required the department to adopt emergency regulations to implement the program and set a hard deadline of January 30, 2029 for adopting permanent regulations. Without it, there is no statutory deadline for regulatory implementation.

A typo ('the The') in Section 50899.16(a) was corrected to 'The' in the enrolled version.

The Department of Insurance is no longer a required consultation partner. The department must now only consult with the California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee.

Technical assistance scope was narrowed: the phrase 'or that are jointly pursuing commercial insurance pursuant to this chapter' was removed, limiting the program's explicit focus to alternative risk financing entities rather than also covering joint commercial insurance efforts.

A specific technical assistance item requiring the department to bring together multiple affordable housing providers to pool risk and apply jointly for insurance or join an alternative risk financing entity was deleted.

A new requirement was added: the department must adopt permanent regulations for the operation of the program by January 30, 2029. Previously there was no fixed deadline for transitioning from emergency to permanent regulations.

The chapter structure was reorganized: the standalone findings section (former Section 50899.15) was removed from the Health and Safety Code chapter and consolidated into Section 1 of the bill, with all subsequent sections renumbered down by one.

Assembly Member Caloza was added as a coauthor of the bill.

Adds new Chapter 20 (Sections 50899.15 through 50899.21) to Part 2 of Division 31 of the Health and Safety Code, establishing the Affordable Housing Risk Reduction Program administered by the Department of Housing and Community Development.

The bill's stated purpose expanded from amending only Government Code Section 50060.5 to also adding an entirely new chapter to the Health and Safety Code relating to housing developers.

Upon appropriation, HCD must provide loans or grants to affordable housing providers for two purposes: implementing risk mitigation measures identified through technical assistance, and funding upfront costs (including capital contributions) required to join alternative risk financing entities such as captives, risk retention groups, or joint powers authorities.

Fiscal committee designation changed from 'no' to 'yes,' indicating the bill now has fiscal implications requiring fiscal committee review, consistent with the new loan and grant authority.

Requires HCD to provide technical assistance including risk analysis, implementation of mitigation measures, identification of alternative risk financing entities, and pooling multiple providers to apply jointly for insurance or join alternative risk financing entities. HCD may contract with third-party consultants for these functions.

Requires HCD to consult with the Department of Insurance, the California Tax Credit Allocation Committee, and the California Debt Limit Allocation Committee when carrying out program functions.

Defines 'alternative risk financing entities' as entities that manage risk outside traditional commercial insurance lines, including captives, risk retention groups, and joint powers authorities.

Authorizes HCD to submit a letter of support to the California Tax Credit Allocation Committee for housing development projects applying for low-income housing tax credits when the applicant cannot obtain one from the applicable local agency in time.

Requires HCD to adopt emergency regulations (in consultation with stakeholders) to implement the program, which remain in effect until nonemergency regulations become effective, notwithstanding the standard sunset period in Government Code Section 11346.1.

Removed the amendment to Government Code Section 50060.5 that would have authorized local agencies establishing natural habitat districts to contract with joint powers authorities to perform improvement or maintenance functions. This was an unrelated local government provision stripped from the housing-focused bill.

In the technical assistance section (Section 50899.17/50899.18), the language 'Identifying alternative risk financing entities and assisting during the application process' was expanded to 'Identifying alternative risk financing entities and approaches, and assisting during the application process,' broadening the scope of what technical assistance may cover.

The fiscal committee vote changed from a mixed 'no yes' to a clear 'yes,' indicating the Assembly Fiscal Committee now supports the bill's fiscal impact.

The legislative findings (former Section 50899.15) were restructured from being embedded within Chapter 20 of the Health and Safety Code to standing as a standalone Section 1 before the chapter is added, a drafting reorganization with no substantive policy effect.