CA AB2186

Establishes the Housing Cost Reduction Incentive Program administered by the Department of Housing and Community Development to reimburse cities, counties, and cities and counties for development impact fee reductions and deferrals on qualified housing developments.

Requires the department to provide grants equal to 50% of development impact fee reductions for qualified housing developments and grants covering accrued interest on deferred development impact fees at the annual mid-term Applicable Federal Rate.

Defines "qualified housing development" as rental housing with at least 75% of units affordable to lower-income households under a recorded regulatory agreement, or home ownership developments sold to low- or moderate-income households at affordable prices.

Requires the department to issue a Notice of Funding Availability before December 31 of the year the program receives funding and accept applications in the subsequent year; if funds are insufficient, grants must be reduced proportionally to all eligible applicants.

Requires grant funds to be deposited into the same public entity fund or account where development impact fees would normally go and used solely for purposes the original fee would have supported; exempts program guidelines from standard rulemaking procedures but requires stakeholder comment periods.