SB686 allows property owners to take out additional debt for affordable housing rehabilitation or investment, subject to department approval.

SB686 amends Section 50406.4 of the Health and Safety Code to allow property owners with regulatory agreements to take out additional debt for reasonable rehabilitation or improvements, including soft costs. Extracted equity can be used for various purposes, such as contributing to other affordable housing projects, purchasing tax credit investor interests, or paying deferred developer fees. The bill ensures that the department's regulatory agreement remains in a senior position if equity is extracted.

SB686 allows property owners to take out additional debt for affordable housing rehabilitation or investment, subject to department approval.

SB686 amends Section 50406.4 of the Health and Safety Code to allow property owners with regulatory agreements to take out additional debt for reasonable rehabilitation or improvements, including soft costs. Extracted equity can be used for various purposes, such as contributing to other affordable housing projects, purchasing tax credit investor interests, or paying deferred developer fees. The bill ensures that the department's regulatory agreement remains in a senior position if equity is extracted.