CA SB1032

Authorizes the Department of Housing and Community Development to forgive the full principal, interest, fees, and outstanding balances of multifamily housing loans under specified rental housing finance programs upon borrower request.

Requires borrowers seeking loan forgiveness to demonstrate that the loan has matured or will mature within 24 months, that repayment would impede ability to maintain the project as affordable housing, that forgiveness will maintain affordability, and that the borrower is a nonprofit entity.

Projects receiving loan forgiveness must maintain the same number of affordable units at the same affordable housing costs as the regulatory agreement, except adjustments may be made minimally to ensure financial feasibility, and units must be subject to a deed restriction for the remaining useful life of the project.

Allows borrowers to appeal loan forgiveness decisions to the Secretary of Business, Consumer Services, and Housing for reconsideration.

Declares that loan forgiveness serves the public purpose of promoting affordable housing and does not constitute a gift of public funds under the California Constitution.