CA AB1789

Expands eligibility for Department of Housing and Community Development loans and grants to include "challenged developments" in addition to existing department-funded housing projects with expired or expiring affordability restrictions.

Defines "challenged development" as a property that is at least 15 years old, serves very low or extremely low income households (no more than 45% area median gross income), and lacks sufficient access to private or public resources for substantial rehabilitation.

Requires the department to prioritize loans and grants to department-funded projects with expired or expiring affordability restrictions that are at risk of conversion to market-rate housing.

Allows the department to approve loan extensions, reinstatements, subordinations, and tax credit equity investments for projects receiving rehabilitation funds without complying with standard Chapter 3.9 requirements.

Authorizes the department to establish and waive loan processing and monitoring fees as necessary to ensure project feasibility and long-term affordability.