Multifamily Housing Program: Homekey: adaptive reuse.

Existing law establishes the Multifamily Housing Program, administered by the Department of Housing and Community Development, to provide 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 requires that specified funds appropriated to provide housing for individuals and families who are experiencing homelessness or who are at risk of homelessness and who are inherently impacted by or at increased risk for medical diseases or conditions due to the COVID-19 pandemic or other communicable diseases be disbursed in accordance with the Multifamily Housing Program for specified uses, including acquisition or rehabilitation of motels, hotels, hostels, or other sites, as provided. This disbursement program is referred to as Homekey. This bill would additionally allow Homekey funds awarded on or after January 1, 2027, to be used for adaptive reuse, as defined. The bill would also require that adaptive reuse projects be treated as a distinct eligible project category and not be subject to per unit cost caps. Existing law, upon appropriation, requires Homekey awards to be expended within 8 months of the date of the award, as provided. This bill would require, for Homekey awards made on or after July 1, 2026, that construction completion, capital expenditure, and completion of occupancy occur within 24 months of the date of the award for specified projects, and within 14 or 15 months for all other projects, as provided.