CA AB2638

Authorizes the Department of Housing and Community Development to approve loan payoffs, equity extraction, extensions, reinstatements, subordinations, and tax credit investments for multifamily affordable housing developments if the project has a remaining useful life equal to or greater than the regulatory agreement term.

Prohibits these restructuring actions if they would result in rent increases exceeding the annual adjustment allowed under the department's regulatory agreement.

Allows the department to charge monitoring fees (continuing through the end of the regulatory agreement term) and transaction fees for restructuring, with flexibility to waive or defer fees for developments unable to pay.

Limits developer fees to amounts allowed by the California Tax Credit Allocation Committee or 25% of actual rehabilitation costs, and restricts rent increases for existing tenants (5% annually for very low-income tenants, 10% for others) until rents reach specified maximums.

Defines "capitalized operating reserves" as funds for covering potential operating deficits over time for the No Place Like Home Program and declares the act an urgency statute effective immediately.