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AB-2969 California Housing Finance Agency: accessory dwelling units.(2023-2024)



Current Version: 02/16/24 - Introduced

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AB2969:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 2969

Introduced by Assembly Member Ting

February 16, 2024

An act to amend Section 51531 of the Health and Safety Code, relating to housing.


LEGISLATIVE COUNSEL'S DIGEST


AB 2969, as introduced, Ting. California Housing Finance Agency: accessory dwelling units.
Existing law establishes the California Housing Finance Agency (CalHFA) within the Business, Consumer Services, and Housing Agency with the primary purpose of meeting the housing needs of persons and families of low or moderate income. Existing law establishes various objectives of CalHFA, including, among others, reducing the cost of mortgage financing for accessory dwelling units, as specified.
Existing law requires CalHFA to convene a working group to develop recommendations to assist homeowners in qualifying for loans to construct accessory dwelling units and junior accessory dwelling units on the homeowner’s property and to increase access to capital for homeowners interested in building accessory dwelling units. Existing law requires the working group to include specified representatives and to explore different opportunities to mitigate risks for lenders, including, but not limited to, loan guarantees, mortgage insurance, managed escrow, and rental income guidelines.
This bill would make a nonsubstantive change to these provisions.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 51531 of the Health and Safety Code is amended to read:

51531.
 (a) The agency shall convene a working group to develop recommendations for the purposes of the program. The purpose of the program is to assist homeowners in qualifying for loans to construct accessory dwelling units and junior accessory dwelling units on their the homeowner’s property and to increase access to capital for homeowners interested in building accessory dwelling units.
(1) The working group shall include, but not be limited to, representatives from federal mortgage agencies, private lenders, community development financial institutions, community-based organizations, local housing trust funds, joint powers authorities, regional housing finance authorities, and credit unions.
(2) The working group shall explore the feasibility of different options to increase program utilization, including, but not limited to, a loan loss reserve or other credit enhancements to encourage lending, and different loan products such as renovation loans, bridge loans, and second mortgages.
(3) The working group shall explore different opportunities to mitigate risks for lenders, including, but not limited to, loan guarantees, mortgage insurance, managed escrow, and rental income guidelines.
(4) The working group shall explore opportunities to increase outreach and education to inform homeowners about the various loan and grant products available to them.
(5) The working group shall explore expanding financing options to construction costs and factory-built accessory dwelling units, including through partnerships with local agencies and qualified nonprofits. The working group shall also explore matching fund opportunities for the grants.
(6) The working group shall explore different opportunities to ease constraints that limit the loan process for homeowners, including issues that are not controlled by the agency, including, but not limited to, federal lending standards and local practices.
(b) The working group shall finish developing recommendations by July 1, 2023, for the agency to consider in the next update of its accessory dwelling unit guidelines.