California Health and Safety Code

§ 50406.4

HSC § 50406.4 Effective Jan 1, 2026Div. 31 · Part 2 · Ch. 1

Statute text

Notwithstanding any other law, and to the extent permitted under federal law and the California Constitution, the department shall allow an owner of a property subject to a regulatory agreement with the department to take out additional debt on the development to finance, with the department’s approval, rehabilitation of the property or investment in new affordable housing, if all of the following conditions are met:

(a)(1) All hard debt, including the additional debt, is underwritten with a debt-service coverage ratio of at a minimum 1.15 and is demonstrated to project positive cash flow for 15 consecutive years.

(2)For the purposes of this subdivision, “hard debt” means debt that must be repaid via an amortizing payment or at a specified maturity date.

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Legislative history

Amended (as added by Stats. 2025, Ch. 22, Sec. 48) by Stats. 2025, Ch. 523, Sec. 1. (SB 686) Effective January 1, 2026.