,i  #aad? ,,congress  #a/ ,session  ,h4 
,r4 #chbg  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,octob] #bc1 #bjae    
,ms4 ,max9e ,wat]s ( ,cali=nia introduc$
 ! foll[+ bill2 :i* 0 ref]r$ to !       
,committee on ,f9ancial ,s]vices  ,a    
,,bill  ,to improve ! program "u section
 #h ( ! ,unit$ ,/ates ,h\s+ ,act ( #aicg
 = us+ am\nts = r5tal v\*] assi/ance =  
project-bas$ r5tal assi/ance1 & = o!r   
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,project-,bas$ ,v\*]       
,improvem5t ,act ( #bjae4  #b4 ,units   
own$ by ,public ,h\s+ ,ag5cies ,p>agraph
 7#aa7 ( section #h7o7 ( ! ,unit$ ,/ates
 ,h\s+ ,act ( #aicg 7#db ,u4,s4,c4      
#adcg;f7o77#aa77 is am5d$--  7#a7 by    
/rik+ 7#aa7 ,leas+ ( units own$ by      
pha4--,if & ins]t+ ! foll[+3  7#aa7     
,leas+ ( units own$ by pha  7,a7        
,inspections & r5t det]m9ations ,if  2 &
  7#b7 by add+ at ! end ! foll[+ new    
subp>agraph3  7,b7 ,units own$ by pha ,=
 purposes ( ?is subsection1 ! t]m own$  
by a public h\s+ ag5cy means1 ) respect 

to a dwell+ unit1 t ! dwell+ unit is 9 a
 project t is own$ by su* ag5cy1 by an  
entity :olly controll$ by su* ag5cy1 or 
by a limit$ liability company or limit$ 
p>tn]%ip 9 :i* su* ag5cy 7or an entity  
:olly controll$ by su* ag5cy7 holds a   
controll+ int]e/ 9 ! manag+ memb] or    
g5]al p>tn]4 ,a dwell+ unit %all n be   
deem$ to be own$ by a public h\s+ ag5cy 
= purposes ( ?is subsection because !   
ag5cy holds a fee int]e/ z gr\nd lessor 
9 ! prop]ty on :i* ! unit is situat$1   
holds a security int]e/ "u a mortgage or
 de$ ( tru/ on ! unit1 or holds a       
non-controll+ int]e/ 9 an entity :i*    
owns ! unit or 9 ! manag+ memb] or g5]al
 p>tn] ( an entity :i* owns ! unit4  4  
#c4 ,,pha project-bas$ assi/ance  7a7 ,9
 g5]al ,p>agraph 7#ac7 ( section #h7o7 (
 ! ,unit$ ,/ates ,h\s+ ,act ( #aicg 7#db
 ,u4,s4,c4 #adcg;f7o77#ac77 is am5d$--  
7#a7 by /rik+ /ructure ea* place su* t]m
 appe>s & ins]t+ 8project02  7#b7 by    
/rik+ /ructures ea* place su* t]m appe>s
 & ins]t+ 8projects02  7#c7 by /rik+    

subp>agraph 7,b7 & ins]t+ ! foll[+ new  
subp>agraph3  7,b7 ,p]c5tage limitation 
7i7 ,9 g5]al ,subject to clause 7ii71 a 
public h\s+ ag5cy may use = project-bas$
 assi/ance "u ?is p>agraph n m ?an #bj  
p]c5t ( ! au?oriz$ units = ! ag5cy4     
7ii7 ,exception ,a public h\s+ ag5cy may
 use up to an additional #aj p]c5t ( !  
au?oriz$ units = ! ag5cy = project-bas$ 
assi/ance "u ?is p>agraph1 to provide   
units t h\se individuals & families t   
meet ! def9ition ( homeless "u section  
#ajc ( ! ,mc,kinney-,v5to ,homeless     
,assi/ance ,act 7#db ,u4,s4,c4 #aacjb71 
t h\se families ) vet]ans1 t provide    
supportive h\s+ to p]sons ) disabilities
 or eld]ly p]sons1 or t are locat$ 9    
areas :]e v\*]s "u ?is subsection are   
difficult to use1 z specifi$ 9          
subp>agraph 7,d77ii77,,ii74 ,any units (
 project-bas$ assi/ance t are atta*$ to 
units previ\sly subject to f$]ally      
requir$ r5t re/rictions or receiv+ ano!r
 type ( long-t]m h\s+ subsidy provid$ by
 ! ,secret>y %all n c\nt t[>d ! p]c5tage

 limitation "u clause 7i7 ( ?is         
subp>agraph4 ,! ,secret>y may1 by       
regulation1 e/abli% additional          
categories = ! exception "u ?is clause4 
2  7#d7 by /rik+ subp>agraph 7,d7 &     
ins]t+ ! foll[+ new subp>agraph3  7,d7  
,income-mix+ requirem5t  7i7 ,9 g5]al   
,except z provid$ 9 clause 7ii71 n m ?an
 ! great] ( #be dwell+ units or #be     
p]c5t ( ! dwell+ units 9 any project may
 be assi/$ "u a h\s+ assi/ance paym5t   
contract = project-bas$ assi/ance       
pursuant to ?is p>agraph4 ,= purposes ( 
?is subp>agraph1 ! t]m project means a  
s+le build+1 multiple contigu\s build+s1
 or multiple build+s on contigu\s p>cels
 ( l&4  7ii7 ,exceptions  7,i7 ,c]ta9   
families ,! limitation "u clause 7i7    
%all n apply to dwell+ units assi/$ "u a
 contract t are exclusively made        
available to eld]ly families or to      
h\seholds eligible = supportive s]vices 
t are made available to ! assi/$        
resid5ts ( ! project1 accord+ to /&>ds =
 su* s]vices ! ,secret>y may e/abli%4   

7,,ii7 ,c]ta9 areas ,) respect to areas 
9 :i* t5ant-bas$ v\*]s = assi/ance "u   
?is subsection are difficult to use1 z  
det]m9$ by ! ,secret>y1 & ) respect to  
c5sus tracts ) a pov]ty rate ( #bj p]c5t
 or less1 clause 7i7 %all be appli$ by  
sub/itut+ #dj p]c5t = #be p]c5t1 & !    
,secret>y may1 by regulation1 e/abli%   
additional conditions4  7,,iii7 ,c]ta9  
contracts ,! limitation "u clause 7i7   
%all n apply ) respect to contracts or  
r5ewal ( contracts "u :i* a great]      
p]c5tage ( ! dwell+ units 9 a project 7 
assi/$ "u a h\s+ assi/ance paym5t       
contract = project-bas$ assi/ance       
pursuant to ?is p>agraph on ! date ( !  
enactm5t ( ! ,project-,bas$ ,v\*]       
,improvem5t ,act ( #bjae4  7,,iv7 ,c]ta9
 prop]ties ,any units ( project-bas$    
assi/ance "u ?is p>agraph t are atta*$  
to units previ\sly subject to f$]ally   
requir$ r5t re/rictions or receiv+ o!r  
project-bas$ assi/ance provid$ by !     
,secret>y %all n c\nt t[>d ! p]c5tage   
limitation impos$ by ?is subp>agraph    

7,d74  7iii7 ,additional monitor+ &     
ov]sight requirem5ts ,! ,secret>y may   
e/abli% additional requirem5ts =        
monitor+ & ov]sight ( projects 9 :i* m  
?an #dj p]c5t ( ! dwell+ units are      
assi/$ "u a h\s+ assi/ance paym5t       
contract = project-bas$ assi/ance       
pursuant to ?is p>agraph4  2  7#e7 by   
/rik+ subp>agraph 7,f7 & ins]t+ ! foll[+
 new subp>agraph3  7,f7 ,contract t]m   
7i7 ,t]m ,a h\s+ assi/ance paym5t       
contract pursuant to ?is p>agraph betwe5
 a public h\s+ ag5cy & ! own] ( a       
project may h a t]m ( up to #bj ye>s1   
subject to--  7,i7 ! availability (     
suffici5t appropriat$ funds = ! purpose 
( r5ew+ expir+ contracts = assi/ance    
paym5ts1 z provid$ 9 appropriation ,acts
 & 9 ! ag5cy's annual contributions     
contract ) ! ,secret>y1 provid$ t 9 !   
ev5t ( insuffici5t appropriat$ funds1   
paym5ts due "u contracts "u ?is p>agraph
 %all take priority if o!r co/-sav+     
measures t d n require ! t]m9ation ( an 
exi/+ contract are available to ! ag5cy2

 &  7,,ii7 compliance ) ! inspection    
requirem5ts "u p>agraph 7#h71 except t !
 ag5cy %all n be requir$ to make bi5nial
 inspections ( ea* assi/$ unit 9 !      
developm5t4  7ii7 ,addition ( eligible  
units ,subject to ! limitations (       
subp>agraphs 7,b7 & 7,d71 ! ag5cy & !   
own] may add eligible units )9 ! same   
project to a h\s+ assi/ance paym5ts     
contract at any "t dur+ ! t]m !re( )\t  
be+ subject to any additional           
competitive selection proc$ures4  7iii7 
,h\s+ "u con/ruction or rec5tly         
con/ruct$ ,an ag5cy may ent] into a h\s+
 assi/ance paym5ts contract ) an own] = 
any unit t does n qualify z exi/+ h\s+ &
 is "u con/ruction or rec5tly has be5   
con/ruct$ :e!r or n ! ag5cy has execut$ 
an agreem5t to ent] into a contract ) ! 
own]1 provid$ t ! own] demon/rates      
compliance ) applicable requirem5ts     
prior to execution ( ! h\s+ assi/ance   
paym5ts contract4 ,?is clause %all n    
subject a h\s+ assi/ance paym5ts        
contract = exi/+ h\s+ "u ?is p>agraph to

 su* requirem5ts or o!rwise limit !     
ext5t to :i* a unit may be assi/$ z     
exi/+ h\s+4  7iv7 ,additional conditions
 ,! contract may specify additional     
conditions1 includ+ ) respect to        
cont9uation1 t]m9ation1 or expiration1 &
 %all specify t ^u t]m9ation or         
expiration ( ! contract )\t ext5sion1   
ea* assi/$ family may elect to use its  
assi/ance "u ?is subsection to rema9 9 !
 same project if its unit complies ) !  
inspection requirem5ts "u p>agraph 7#h71
 ! r5t = ! unit is reasonable z requir$ 
by p>agraph 7#aj77;,a71 & ! family pays 
its requir$ %>e ( ! r5t & ! am\nt1 if   
any1 by :i* ! unit r5t 7includ+ ! am\nt 
all[$ = t5ant-bas$ utilities7 exce$s !  
applicable paym5t /&>d4  2  7#f7 9      
subp>agraph 7,g71 by /rik+ #ae ye>s &   
ins]t+ #bj ye>s2  7#g7 by /rik+         
subp>agraph 7,i7 & ins]t+ ! foll[+ new  
subp>agraph3  7,i7 ,r5t adju/m5ts ,a    
h\s+ assi/ance paym5ts contract pursuant
 to ?is p>agraph ent]$ into aft] ! date 
( ! enactm5t ( ! ,project-,bas$ ,v\*]   

,improvem5t ,act ( #bjae %all provide = 
annual r5t adju/m5ts ^u ! reque/ ( !    
own]1 except t--  7i7 by agreem5t ( !   
p>ties1 a contract may all[ a public    
h\s+ ag5cy to adju/ ! r5t = cov]$ units 
us+ an op]at+ co/ adju/m5t factor       
e/abli%$ by ! ,secret>y pursuant to     
section #ebd7;c7 ( ! ,multifamily       
,assi/$ ,h\s+ ,re=m & ,af=dability ,act 
( #aiig 7:i* %all n result 9 a negative 
adju/m5t71 9 :i* case ! contract may    
require an additional adju/m5t1 if      
reque/$1 up to ! reasonable r5t         
p]iodically dur+ ! t]m ( ! contract1 &  
%all require su* an adju/m5t1 if        
reque/$1 ^u ext5sion pursuant to        
subp>agraph 7,g72  7ii7 ! adju/$ r5t    
%all n exce$ ! maximum r5t p]mitt$ "u   
subp>agraph 7,h72  7iii7 ! contract may 
provide t ! maximum r5t p]mitt$ = a     
dwell+ unit %all n be less ?an ! initial
 r5t = ! dwell+ unit "u ! initial h\s+  
assi/ance paym5ts contract cov]+ !      
units2 &  7iv7 ! provisions ( subsection
 7c77#b77;,c7 %all n apply4  2  7#h7 9  

subp>agraph 7,j7--  7,a7 9 ! fir/       
s5t5ce-- 7i7 by /rik+ %all & ins]t+ may2
 &  7ii7 by ins]t+ be=e ! p]iod ! foll[+
 or may p]mit own]s to select applicants
 f site-bas$ wait+ li/s z specifi$ 9 ?is
 subp>agraph2  7,b7 by /rik+ ! ?ird     
s5t5ce & ins]t+ ! foll[+3 ,! ag5cy or   
own] may e/abli% pref]5ces or crit]ia = 
selection = a unit assi/$ "u ?is        
p>agraph t are consi/5t ) ! public h\s+ 
ag5cy plan = ! ag5cy approv$ "u section 
#e;,a & t give pref]5ce to families :o  
qualify = volunt>y s]vices1 includ+     
disability-specific s]vices1 (f]$ 9     
conjunction ) assi/$ units42 &  7,c7 by 
/rik+ ! fif? & six? s5t5ces & ins]t+ !  
foll[+3 ,a public h\s+ ag5cy may e/abli%
 & utilize proc$ures = own]-ma9ta9$     
site-bas$ wait+ li/s1 "u :i* applicants 
may apply at1 or o!rwise designate to ! 
public h\s+ ag5cy1 ! project or projects
 9 :i* !y seek to reside1 except t all  
eligible applicants on ! wait+ li/ ( an 
ag5cy = assi/ance "u ?is subsection %all
 be p]mitt$ to place _! names on su*    

sep>ate li/1 subject to policies &      
proc$ures e/abli%$ by ! ,secret>y4 ,all 
su* proc$ures %all comply ) title ,,vi (
 ! ,civil ,rights ,act ( #aifd1 ! ,fair 
,h\s+ ,act1 section #ejd ( !            
,rehabilitation ,act ( #aigc1 & o!r     
applicable civil rights laws4 ,! own] or
 manag] ( a project assi/$ "u ?is       
p>agraph %all n admit any family to a   
dwell+ unit assi/$ "u a contract        
pursuant to ?is p>agraph o!r ?an a      
family ref]r$ by ! public h\s+ ag5cy f  
its wait+ li/1 or a family on a         
site-bas$ wait+ li/ t complies ) !      
requirem5ts ( ?is subp>agraph4 ,a public
 h\s+ ag5cy %all disclose to ea*        
applicant all o!r options 9 ! selection 
( a project 9 :i* to reside t are       
provid$ by ! public h\s+ ag5cy & are    
available to ! applicant42  7#i7 9      
subp>agraph 7,m77ii71 by ins]t+ be=e !  
p]iod at ! end ! foll[+3 relat+ to fund+
 o!r ?an h\s+ assi/ance paym5ts2 &      
7#aj7 by add+ at ! end ! foll[+ new     
subp>agraphs3  7,n7 ,/ructure own$ by   

ag5cy ,a public h\s+ ag5cy engag$ 9 an  
initiative to improve1 develop1 or      
replace a public h\s+ prop]ty or site   
may atta* assi/ance to an exi/+1 newly  
con/ruct$1 or rehabilitat$ /ructure 9   
:i* ! ag5cy has an own]%ip int]e/ or :i*
 ! ag5cy has control ( )\t foll[+ a     
competitive process1 provid$ t ! ag5cy  
has notifi$ ! public ( its int5t ?r\gh  
its public h\s+ ag5cy plan & subject to 
! limitations & requirem5ts ( ?is       
p>agraph4  7,o7 ,special purpose v\*]s  
,a public h\s+ ag5cy t adm9i/]s v\*]s   
au?oriz$ "u subsection 7o77#ai7 or 7x7 (
 ?is section may provide su* assi/ance 9
 accordance ) ! limitations &           
requirem5ts ( ?is p>agraph1 )\t         
additional requirem5ts = approval by !  
,secret>y4  4  7b7 ,effective date ,!   
,secret>y ( ,h\s+ & ,urban ,developm5t  
%all issue notice or regulations to     
implem5t subsection 7a7 ( ?is section & 
su* subsection %all take effect ^u su*  
issuance4