CA AB523

Authorizes the Department of Housing and Community Development to reduce interest rates on rental housing development loans to as low as 0.42% per annum, or a rate covering project monitoring costs, whichever is greater

Requires qualifying developments to have no other amortizing debt, utilize low-income housing tax credits, have 35% or more units serving households at 30% or less of area median income, and have no senior lien debt

Permits the department to adjust interest rates on loan extension requests associated with federal or state low-income housing tax credits awarded on or after January 1, 2014, to the most recently published applicable federal rate

Allows the department to forgive accrued interest if the total debt and interest at loan term end would exceed what would have been owed under the original interest rate

Requires the department to charge a fee sufficient to cover administrative costs for loan modifications requested by borrowers