The California Department of Housing and Community Development (HCD) released an amendment to its Transition Reserve Policy Administrative Memo, which implements statutory changes made under SB 948 (Chapter 667, Statutes 2022) applicable to Health and Safety Code Section 60468. The policy applies to all HCD-awarded rental housing projects which have federally originated rental assistance or operating subsidies, or rental subsidies operated by the City and County of San Francisco and the City or County of Los Angeles which will close permanent financing on or after January 1, 2023. The amendment changes the following:

  1. Adds procedures for projects that have contributed to the Pooled Transition Reserve to access the Pooled Transition Reserve
  2. Adds provisions for projects with a project-specific transition reserve whose permanent financing closed prior to January 1, 2023 to opt into the Pooled Transition Reserve beginning January 1, 2024
  3. Makes a few small changes to the original policy that was released January 3, 2023

HCD also released the 2023-2024 NOFA calendar, which they will make available more than $2.8 billion in funding for affordable housing and homelessness prevention.