CA AB1053

Authorizes borrowers to use funds from multifamily housing programs (including the Multifamily Housing Program, Joe Serna Jr. Farmworker Housing Grant Program, and Affordable Housing and Sustainable Communities Program) for construction financing, permanent financing, or a combination of both, at the borrower's option.

Requires the Department of Housing and Community Development to adopt emergency regulations by July 1, 2026, and permanent regulations by July 1, 2027, to implement the new loan financing flexibility provisions.

Permits the department to retain up to 10 percent of its loan amount until permanent conversion based on project and sponsor risk profile.

Allows the department to charge application and monitoring fees to cover enhanced administrative costs associated with construction financing options.

Implementation is contingent upon Legislative appropriation of sufficient funds to the department for guideline adoption and program administration.