(a) The department shall grant funds to one or more fund managers to implement the program until June 30, 2026, which shall include funds for all of the following:

(1) Capitalized operating subsidy reserves.

Terms Used In California Health and Safety Code 50720.6

(2) Loans or grants awarded pursuant to this chapter.

(3) Administrative costs authorized pursuant to paragraph (3) of subdivision (b) of Section 50720.2.

(b) A contract between the department and a fund manager to carry out the provisions of this chapter may be amended past June 30, 2026, if funds are available and if deemed appropriate by the department.

(c) The fund manager or managers shall, in compliance with the guidelines adopted pursuant to this chapter, be responsible for all of the following:

(1) Reviewing and approving loan or grant applications.

(2) Originating and servicing loans or grants, including capitalized operating subsidy reserves.

(3) Establishing terms and conditions for loan or grant applications pursuant to the guidelines adopted pursuant to this chapter.

(4) Ensuring compliance with loan or grant terms and conditions.

(d) The fund manager or managers shall meet all of the following criteria:

(1) Be a nonprofit lender with experience making real estate loans in this state, or be a housing trust fund operated by a city, a county, a city and county, or a joint powers authority as described in Article I (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code operated for the purpose of funding the development, acquisition, rehabilitation, or preservation of affordable housing for low- or moderate-income residents.

(2) Have originated and serviced loans to develop, maintain, improve, or acquire affordable housing, including at least five million dollars ($5,000,000) in acquisition loans.

(3) Demonstrate an ability to process loans for property acquisitions in an expedient manner sufficient to deploy loans necessary to purchase real property in trustee‘s sales pursuant to the time constraints described in Section 2924m of the Civil Code.

(e) The department may, but is not required to, contract with one or more third-party consultants to assist with administering the program.

(1) Any third-party consultant contracted with by the department pursuant to this subdivision must demonstrate expertise in a variety of property ownership and stewardship models, such as rental housing, home ownership, community land trusts, limited-equity housing cooperatives, workforce housing cooperative trusts, or nonprofit affordable housing cooperatives.

(2) In contracting with a third-party consultant pursuant to this subdivision the department shall prioritize to third-party consultants that demonstrate a commitment to and experience in advancing racial equity.

(Amended by Stats. 2022, Ch. 70, Sec. 22. (SB 197) Effective June 30, 2022.)