[{"_1":2,"_112":-5,"_113":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88,100],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6316920,"mediaKeyId","2375196-c3e2b50c3071835c11ea9ed64e803375","parentId",2375196,"title","CalHFA board approves two multifamily loan commitments and $112M allocation from national-mortgage-settlement funds for disaster relief","audioSeconds",3010,"startMs",6802000,"endMs",9812000,"viewUrl","/Search/View?dp=1&key=2375196-c3e2b50c3071835c11ea9ed64e803375&start=6802&end=9812","thumbnailUrl","https://assets.pipeline.soar.com/2375196-c3e2b50c3071835c11ea9ed64e803375/thumbnail_6802000.jpg","articleUrl","/articles/6316920/California/CalHFA-board-approves-two-multifamily-loan-commitments-and-112M-allocation-from-national-mortgage-settlement-funds-for-disaster-relief","mediaUrl","https://secure.pipeline.soar.com/6316920-0dd0689ec312c810eaf1358615398bd7/orig.mp4?Expires=1771135684&Signature=J2GVCac9sbVLJeDRqizrH1Br7yJMQOBwmaK-hFOJTuIowlpqU83OY5u-FvH6B9m1BiDm5QuiizeG8Yod~VAfRvZHTGcWAtzgKbbmWtH6FOxGAR1pE36RuCCU7PA-Ark2MP7oNaWIXyNqcAkGeuj5OMLmZhddv8BWOxtg6d7CX4GHzQ928mfoMrChtUMLU8gKn8imxSNJK~Ew0msOAMyDH0dJMmIKyz0~c~0Qzwz3dBCdyiec5jSDTVR3~jzqpgT04pLW7qsMOdaMwc4ghlSnGU5jMxTmzI40vO5qJ8bI8Tb7MUqz826k~UxNMy88T75MM548WbBaT5tOu1HVGDKVPg__&Key-Pair-Id=KUT5TJCACFTXG","author","CalHFA Board Meetings 2025","date","2025-02-20T21:22:12Z","article","The California Housing Finance Agency Board on Feb. 20 approved three formal actions: final permanent loan commitments for Mason's Village (Palmdale) and North City (San Marcos) and a resolution to direct remaining National Mortgage Settlement funds to expand housing counseling and provide short-term mortgage assistance for homeowners affected by recent presidentially declared disasters.

Votes at a glance

- Resolution 25-03: Final loan commitment for Mason's Village (Palmdale) — Approved (roll-call).
- Permanent loan: $30,000,000 (per staff presentation).
- MIP subsidy: $1,600,000 (staff report).
- Motion: Director Henning (mover). Second: (recorded as second; committee minutes record an affirmative second prior to roll call).
- Vote: Unanimous roll-call approval. Recorded \"yes\" votes: Chair Cervantes; Miss Kurgan; Director Henning; Director Prince; Director Russell; Director Fiegels; Director Sotelo; Director Olmstead; Dr. White; Mr. Williams.

- Resolution 25-04: Final loan commitment for North City (San Marcos) — Approved (roll-call).
- Permanent loan: $39,150,000 (per staff presentation).
- MIP subsidy: $4,000,000 (staff report).
- Motion: Director Henning (mover). Second: Director Sotelo.
- Vote: Unanimous roll-call approval. Recorded \"yes\" votes: Chair Cervantes; Miss Kurgan; Director Henning; Director Prince; Director Russell; Director Fegels; Director Sotelo; Director Olmstead; Dr. White; Mr. Williams.

- Resolution 25-05: Allocation of remaining National Mortgage Settlement (NMS) funds for housing counseling and mortgage assistance to disaster-affected homeowners — Approved as amended (roll-call).
- Board action: Authorized CalHFA executive director to design, implement and execute a mortgage-assistance program and expand HUD-certified housing counseling using remaining NMS funds.
- High-level allocation described in discussion: approximately $25,000,000 to expand housing counseling and about $100\u0000\u0000\u0000000\u0000\u0000\u0000
pproximately $112,000,000 intended for mortgage-assistance payments (staff and administration discussions referenced figures in that range during the meeting). The board amended the resolution language to extend eligibility to homeowners affected by presidentially declared disasters since Jan. 1, 2023, and to set the mortgage-assistance design as 3 months with an ability to expand up to 6 months depending on funding and program design.
- Motion: Director John Prince (mover). Second: Director Henning.
- Vote: Unanimous roll-call approval as amended. Recorded \"yes\" votes: Chair Cervantes; Miss Kurgan; Director Henning; Director Prince; Director Russell; Director Fiegels; Director Sotelo; Director Olmstead; Dr. White; Mr. Williams.

What the board approved and next steps

Mason's Village: staff described the 191-unit Palmdale family project as Phase 2 of a larger development; total development cost per unit was noted as relatively low in staff presentation, and the loan was approved with one underwriting exception (density-bonus agreement). Staff described the MIP subsidy of $1.6 million and CalHFA's permanent loan of $30 million; the board asked questions about whether the product represented urban-fringe development and noted environmental and planning trade-offs.

North City (San Marcos): staff presented the 224-unit family project (four-story, elevator) with a $39.15 million permanent loan and $4 million in MIP subsidy. Board members asked about the capital stack, timing of construction loans vs. permanent financing, and the presence of local linkage or in-kind contributions from the master developer. Staff confirmed the project did not carry project-based vouchers but is expected to accept tenant-held Section 8 vouchers.

NMS fund use (disaster counseling and mortgage assistance): the board adopted a resolution authorizing the executive director to design and implement a mortgage-assistance program that would provide short-term mortgage payments (staff proposed three months, up to six months if funds allow) for homeowners whose primary residence was damaged or destroyed in presidentially declared disasters since Jan. 1, 2023. The board also approved expanding HUD-certified housing counseling statewide and agreed to receive a March update on program design and implementation. Staff said they expect a rapid procurement and program-launch timetable to begin assistance by late spring/early summer.

Voting details and records

All three resolutions passed on recorded roll-call votes. The board used its standard roll-call procedure; roll-call responses were recorded in the meeting minutes as noted above.

Why it matters: The loan approvals move two large multifamily projects closer to construction and permanent financing; the NMS allocation directs previously unspent settlement funds to counseling and mortgage payments for disaster survivors across multiple disasters and counties, and the board set policy guardrails before deployment.

Documents introduced or amended at vote: staff reports and resolution texts for 25-03, 25-04 and 25-05 (the board accepted a narrow amendment to extend NMS eligibility to presidentially declared disasters since Jan. 1, 2023, and to set the mortgage-assistance design at 3 months with a possible expansion to 6 months depending on program resources).","mediaType","Video","parentTitle","CalHFA Audit and Risk Committee and General Board Meeting - 02/20/2025","oneSentenceSummary","The CalHFA Board approved final loan commitments for two multifamily developments and authorized the agency to use remaining national-mortgage-settlement funds for housing counseling and short-term mortgage assistance for homeowners affected by presidentially declared disasters since Jan. 1, 2023.","taxTitle","Housing Finance Agency, Agencies under Office of the Governor, Executive, California","taxId",70084,"location","California","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6316925,"CalHFA reports 11,600 units through Mixed Income Program; board raises questions on developer fees and program priorities",5623,2695000,8318000,"/Search/View?dp=1&key=2375196-c3e2b50c3071835c11ea9ed64e803375&start=2695&end=8318","https://assets.pipeline.soar.com/2375196-c3e2b50c3071835c11ea9ed64e803375/thumbnail_2695000.jpg","/articles/6316925/California/CalHFA-reports-11600-units-through-Mixed-Income-Program-board-raises-questions-on-developer-fees-and-program-priorities","https://secure.pipeline.soar.com/6316925-b35ee7fb47b2341078d318a208fce83a/orig.mp4?Expires=1771135684&Signature=Hmgu9ka5EHI6PU7r12FgnCM6tl4FwqJp4M5wXH5veDsqFcw1gh1gfrWIXHYrhx0iu0QtkPqwMXiMNGcW6Odgnu~hGMV3WFZh-mzt7xvWFWbRwCBv7jmCDBTG8d7GAHDjr5ORxFp5wG2q16EhAgUROhVVBbXLWFQPmPHVx5u8lnv4YYmyBBUni8I3MVhrJZIh~JhgjWm3dZiy-iVI4BH8sE-ytEiLRtctiVSlpnWrWhMg9qhHrUrhis1vDZ9qisuzmjOQ-DS6LPxzAe0JlGE2lOhlOucbSo~wzYmibjizVupOd3F-HmHVK0NYhD1F6-Ud8QGtG-ynk5grScyZetZN5Q__&Key-Pair-Id=KUT5TJCACFTXG","CalHFA staff told the Board of Directors on Feb. 20 that the agency's Mixed Income Program (MIP) has produced roughly 11,600 units since 2019 and driven roughly $1.3 billion in permanent loans and about $400 million in MIP subsidy. Staff released the MIP 25 term sheet and said they expect demand to again outstrip available subsidy and state tax credits.

\"Since 2019, CalHFA has helped to build 11,600 units through this program and created a really strong CalHFA portfolio along the way,\" Director of Multifamily Programs Stephanie McFadden said in opening remarks. Steve Gallagher, CalHFA's housing finance chief and one of the program's architects, summarized years of incremental program changes, including the pairing of MIP subsidy with CalHFA permanent loans, CDLAC Mixed Income Pool use, and limits imposed in 2023 on per-project MIP amounts and sponsor exposures.

Why it matters: MIP is a major driver of CalHFA's multifamily portfolio growth and is the agency's primary subsidy lever for certain mixed-income developments. Directors asked staff to prepare a March strategic workshop to set program priorities, test trade-offs and examine how MIP fits into a changing funding landscape as SB 2 revenues fall.

Program trends and capacity

Staff presented a six-year program summary showing a step-up in production after AB 101 funds were added in 2020. CalHFA has supported projects across 22 counties; 74% of MIP-restricted units have been in the 50\u0000\u0000\u0000to 70% area median income (AMI) range and the portfolio's overall AMI sits near 57%.

McFadden and Gallagher emphasized that pairing MIP subsidy with CalHFA permanent loans has produced a growing, FHA-insured (risk-share) lending portfolio that will expand CalHFA's multifamily assets materially over the next five years.

Board questions: developer fee waivers, exceptions and local collaboration

Board members pressed staff on recurring underwriting exceptions that appear in many MIP deals:
- Density-bonus agreements that subordinate local regulatory covenants to an earlier approval (staff said these are often mitigated by standstill agreements and recommended approval in the current rounds).
- Residual-receipt allocation and repayment order (CalHFA's policy generally directs 50% of residual receipts toward MIP loan repayment, but equity investors commonly require priority to repay deferred developer fee to protect tax-credit basis). Staff said they typically require a general partner contribution if exit math prevents full repayment at maturity.

Directors asked for data showing the magnitude and frequency of developer-fee waivers and the cumulative developer-fee income captured by projects that used MIP subsidy. Director Sotelo asked staff to quantify the typical deferred developer fee magnitudes and how the repayment sequencing affects the agency's ability to recycle subsidy.

Several directors asked how MIP influences local engagement. Director Prince asked whether the program enabled projects to \"bypass\" local priorities and whether CalHFA should require more local collaboration. Director Russell cautioned that local outreach requirements can slow projects and urged a careful balance.

MIP 25 and near-term adjustments

Staff said MIP 25 term sheets were released in February. Changes for the current round include a temporary exception to the county cap for Los Angeles County to support disaster-recovery needs and an aggregated sponsor-exposure cap to broaden subsidy distribution. Staff removed a state-tax-credit leveraging bonus from the ranking because fewer state credits were available this year.

Directors asked staff to bring a March workshop that will include: a historical look at the MIP portfolio, unit-level affordability and gaps analysis (why projects needed subsidy), the relationship between the MIP subsidy and other capital (bonds, tax credits), and policy choices on developer fees and exceptions.

Bottom line: MIP remains a high-producing program for CalHFA's multifamily portfolio, but directors asked for more data and a strategic session to set clear priorities (for example, whether to prioritize deeper affordability, geographic distribution, or faster deal throughput) as SB 2 revenues and state tax-credit availability decline.","CalHFA staff briefed the board on the Mixed Income Program\u0000(MIP): since 2019 the program has produced about 11,600 units and $400 million in subsidy, with MIP 25 released for applications. Directors asked for a March workshop to clarify policy objectives, developer fee waivers, county caps and long-term funding strategy as SB 2 revenues decline.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6316930,"CalHFA audit committee outlines multi-step procurement to select next external auditor",434,2810000,3244000,"/Search/View?dp=1&key=2375196-c3e2b50c3071835c11ea9ed64e803375&start=2810&end=3244","https://assets.pipeline.soar.com/2375196-c3e2b50c3071835c11ea9ed64e803375/thumbnail_2810000.jpg","/articles/6316930/California/CalHFA-audit-committee-outlines-multi-step-procurement-to-select-next-external-auditor","https://secure.pipeline.soar.com/6316930-889ccc8f75cc9cdd2ef0126b759c1cfb/orig.mp4?Expires=1771135684&Signature=k14AjvI-aCoC371LgXUvcSXDXNyQnecoEGOO8MJrl-eLKvpzNlpx-sdORFC~Dfy7YxvBEFpHIWzJMNqoI8k0imC~OU7L-gMKRbA1nwhNB4m2oLM6iB5vw3T2IZ7jyN67QWtJhi7lQZfS7zcaYq7bOufecdOY2D-ott3ngM9eDu28X7PgdiVobShn9jh4VJNrpqZiQazhQrldKmnvPeYzTkjrmWzUhcKwNxY9A2R7kv-tT0KkFxUs7xvUWzazQX-NeO7SrAdHTvugCbkFYk~Kugb2FVYFUBC2D4INYSWsoQZVGFNR0jY1sLuo624JT5b4iSMdaG-dtdlS1nQxf9Qq6g__&Key-Pair-Id=KUT5TJCACFTXG","CalHFA audit committee members reviewed a planned multi-step procurement timeline on Feb. 20 as the agency prepares to replace its external auditor when the current contract with CliftonLarsonAllen ends Dec. 31, 2025.

Comptroller Oksana Glushenko and staff outlined a procurement that will emphasize public-sector experience, housing-industry expertise and modern audit technology. The plan calls for: defining required skills and scope, issuing an RFP, screening proposals, a short list of 3 to 5 finalists, interviews with the audit committee, and legal negotiation of a final contract.

Glushenko said staff will perform broad outreach to maximize competition and include minority- and small-business firms in targeted outreach. The committee will be engaged at the finalist-interview stage; audit committee members asked that the selection criteria be presented to the committee for discussion before the finalist interviews.

Why it matters: The agency's external auditor performs the statewide financial-statement opinion and single-audit work. Committee members and staff said they want transparent, documented evaluation criteria and committee buy-in before finalist interviews to ensure a robust selection.

Process details and timing

Staff described the planned steps:
- Define auditor requirements (public-sector experience, mortgage/financial-services and housing-sector familiarity).
- Establish selection criteria (experience, reputation, cost structure, technology and tools).
- Issue RFP and screen proposals; create a shortlist of three to five top candidates.
- Audit committee members will interview finalists (staff proposed scheduling interviews in August-September).
- Negotiate contract and finalize award, including data-handling and confidentiality terms.

Committee request and next steps

Director Henning and other members asked that staff present the draft evaluation criteria to the committee once it is developed so committee members can comment before the finalist interviews. Staff agreed to return to the audit committee with the proposed criteria and to coordinate interview schedules that allow committee participation.

Bottom line: The committee supported a transparent, multi-step RFP and interview process and asked to review the evaluation criteria before finalists are interviewed.","CalHFA staff told the audit committee they plan a multi-phase request-for-proposal process to select auditing services after CLA's contract ends Dec. 31, 2025. Proposed steps include defining firm qualifications, an evaluation panel, and committee interviews of finalists.",{"_33":101,"_35":36,"_37":38,"_39":102,"_41":103,"_43":104,"_45":105,"_47":106,"_49":107,"_51":108,"_53":109,"_55":56,"_57":58,"_59":110,"_61":62,"_63":64,"_65":111,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6316935,"CalHFA audit shows clean opinions; auditors flag allowance and new GASB guidance",2339,413000,2752000,"/Search/View?dp=1&key=2375196-c3e2b50c3071835c11ea9ed64e803375&start=413&end=2752","https://assets.pipeline.soar.com/2375196-c3e2b50c3071835c11ea9ed64e803375/thumbnail_413000.jpg","/articles/6316935/California/CalHFA-audit-shows-clean-opinions-auditors-flag-allowance-and-new-GASB-guidance","https://secure.pipeline.soar.com/6316935-69af202f441d41d2b7a2ab15af4e7aba/orig.mp4?Expires=1771135684&Signature=iLYd2HXOqbS1VwufGJ0vydXXIgSv04~Mg~-OYF4-xR62kr8bQc38lgt2FHBY7vRXaIBLz5JvI6H6UHVjqi7lZro1~QyB9lISY0fjk1yYUH0nidTFFNnIykFilMDV2i1DPaN7F4k1bCEFQAedaC8fFYONd0TXQe12onPgdLSSvtZIE4Ero94UQbiaqhGBTq-UAizs5W17RZ3yEtkuv51EX~Alc1LXq0zNkITL0l~DoKNMPldn4dnbwxhFuRodMEpQ1jG8vaPk9ymMm6YzZPz-W8O3jMLfQH35wJ4dwaNPUkG0twdsRQyly7T8czpwXkAoBG~Zm95eE6VGXrP3GSxdTg__&Key-Pair-Id=KUT5TJCACFTXG","The California Housing Finance Agency (CalHFA) received unmodified opinions this year on both its agency financial statements and federal awards, CalHFA staff and auditors told the agency\u0000audit committee on Feb. 20.

At a standing-room discussion of the fiscal year ended June 30, 2024, Oksana Glushenko, CalHFA comptroller, said auditors had signed off on the audit on Dec. 9. Auditor Mandy Merchant of CliftonLarsonAllen (CLA) told the committee the opinion on the financial statements and the single-audit reports on federal awards were \"unmodified,\" and that the audit produced no findings, material weaknesses or significant deficiencies.

The result means CLA issued a clean opinion for the agency\u0000\u0000financial statements and federal programs. Merchant said the engagement produced no audit adjustments and no changes to the audit plan. \"We did not have any significant difficulties, no disagreements,\" she told the committee. Glushenko noted the agency also received the Government Finance Officers Association certificate of excellence in financial reporting for the seventh consecutive year.

Why it matters: Clean opinions indicate the auditors found the agency's financial statements were presented fairly in all material respects and that federal program compliance testing did not identify reportable deficiencies. But auditors and staff pressed the committee to maintain focus on key estimates and liabilities that carry forward risk.

Allowance for loan losses and portfolio monitoring

Auditors identified the allowance for program loan losses as a significant management estimate that bears continued scrutiny. Merchant and CLA senior associate Liz Richardson described the allowance methodology as a combination of portfolio look-backs (monetary unit and other sampling) and individual identification of problem loans. Merchant said CLA samples hundreds of confirmations and uses monetary-unit sampling for material coverage.

Committee members pressed staff on the size and sufficiency of the allowance. Merchant pointed the committee to Note 5 in the financial statements, where management details the allowance for program loan losses and its underlying methodology. In discussion, CalHFA staff said the allowance was arrived at using historical performance and a tiered approach for loans in workout or delinquency status; staff cited an example overall allowance balance discussed during the meeting.

New audit standards and GASB 101

CLA auditors flagged that new auditing standards on technology (AU-C modernization) and heightened IT testing added communication and work to the 2024 engagement. On accounting standards, CLA highlighted GASB 101 as the principal forthcoming change that may affect CalHFA's reporting; GASB 101 addresses compensated absences and asks governments to align recorded liabilities with policy and the estimated probability that leave will be taken or paid out. CLA said most agencies would see a small or modest impact; it has begun outreach and will issue guidance to clients.

Pension and OPEB matters

Auditors reminded the committee that pension and other postemployment benefits (OPEB) are actuarial estimates supplied by the State Controller's Office or other statewide actuaries. Glushenko and CLA said staff maintained close coordination with the Controller's Office to obtain actuarial inputs, which aided timely completion of the audit.

Audit process and single-audit scope

CLA described a risk-based approach to the engagement that emphasized loan receivables, revenue recognition and program compliance testing for federal awards. Merchant noted the firm performs onsite testing (about one week on-site) supplemented by remote procedures and that confirmatory responses from borrowers have a high return rate because CalHFA assists with follow-up.

Committee direction and next steps

Directors asked staff to bring additional work-product to future committee meetings to help the committee carry out its oversight role, including a closer look at the allowance calculation and historical performance so members can assess whether the allowance is sufficient for the portfolio. The committee also asked staff to return to the March meeting with follow-ups on compensated-absence exposure and any policy implications for workforce scheduling and budgeting.

Bottom line: CLA delivered clean audit opinions and no findings for FY2024. The committee praised staff and auditors but requested more data and recurring reporting on allowance sensitivity and the OPEB/pension inputs that underpin significant actuarial estimates.","CalHFA\u0000staff and CliftonLarsonAllen auditors reported unmodified (\"clean\") opinions on the agency\u0000fiscal year 2023\u0000\u0000\u000024 financial statements and federal awards. Auditors recommended continued monitoring of the loan-loss allowance and noted implementation steps for GASB 101 on compensated absences.","actionData","errors"]

Article not found

CalHFA board approves two multifamily loan commitments and $112M allocation from national-mortgage-settlement funds for disaster relief

CalHFA reports 11,600 units through Mixed Income Program; board raises questions on developer fees and program priorities

CalHFA audit committee outlines multi-step procurement to select next external auditor

CalHFA audit shows clean opinions; auditors flag allowance and new GASB guidance