CA AB1423

Authorizes borrowers to use funds from Department of Housing and Community Development multifamily housing program loans for construction financing, permanent financing, or a combination of both

Requires the department to deposit funds designated for construction financing with the first lender at or before closing of the construction loan, with disbursement during the construction period per department guidelines

Allows department guidelines to retain up to 10 percent of the loan amount until construction completion

Does not limit other eligible uses of funds under existing multifamily housing programs

Authorizes the department to adopt and amend guidelines implementing these provisions without following the Administrative Procedure Act