SB 417 Summary

• Amends the state housing development authority law to clarify financing procedures for multifamily housing projects serving low/moderate income persons, students, and seniors age 55+.

• Establishes application requirements including credit enhancement proposals, cost undertakings, and a 0.0001 multiplied application fee (refundable/waivable for nonprofits in distressed areas).

• Allows borrowers to issue 6-month loan commitments subject to uncommitted bonding capability, with commitment fees up to 0.1% and extension fees of $5,000 for additional 6-month periods.

• Permits borrowers to receive distributions equal to a 12% return on investment for the first 12 months of operation, increasing by 1% annually with a maximum of 25% for non-distressed areas.

• Requires annual reporting to the authority on tenant incomes, economic benefits, displacement impacts, and demographic data; authorizes authority inspection and audit of financed projects for compliance monitoring.