Housing programs: financing.

Assembly Member Celeste Rodriguez's proposal to enhance fiscal management flexibility for California's rental housing developments would authorize the Department of Housing and Community Development to transfer excess funds between properties with shared ownership and modify certain payment obligations.

The legislation creates new options for managing financial resources across rental housing developments that receive departmental funding. Under the proposed changes, the department could permit transfers of excess reserves or operating income between properties subject to departmental regulatory agreements when they share the same owner or affiliate. The department would also gain authority to waive requirements for residual receipts or minimum annual loan payments specified in these agreements.

The bill establishes specific definitions and conditions for these transfers. Excess operating income would be defined as annual net operating income exceeding 1.15 times the required annual debt service payments, provided owners can demonstrate sufficient income over 15 years. Excess reserves would include replacement, operating, or transition reserves that exceed minimum requirements or are no longer required under regulatory agreements. The department would maintain sole discretion over approving any transfers or payment waivers.