Plain English Breakdown
The official text mentions the bill provides that no reimbursement is required for a 'specified reason,' but does not detail what that specific reason is.
New Option for Affordable Housing Sales Under Density Bonus Law
AB-939 adds an option to meet affordable housing rules by selling units directly to nonprofit corporations, which then sell them to low-income families using special loan programs.
What This Bill Does
- Allows developers and local governments to meet affordability requirements if a for-sale unit is purchased by a specified nonprofit corporation.
- Requires that the homes bought by nonprofits be sold to extremely low, very low, or lower income families who participate in a below-market interest rate loan program.
- Adds new duties for local agencies under the Density Bonus Law without requiring state reimbursement.
Who It Names or Affects
- Developers seeking density bonuses
- Cities and counties that approve housing developments
- Nonprofit corporations purchasing affordable homes
Terms To Know
- Density Bonus Law
- A rule requiring local governments to give developers extra building allowances if they include affordable units.
- Below-market interest rate loan program
- A lending plan offering lower borrowing costs than standard loans for qualifying homebuyers.
Limits and Unknowns
- The bill does not specify exactly which nonprofit corporations qualify to buy the units.
- It is unclear how many projects will choose this new option over existing rules.
- The text states no state reimbursement is required but gives only a general reason for that decision.