Health and Safety Code § 50896.3

(a)All HOME funds made available to the state shall be allocated by the department for the purposes specified in HOME in accordance with the following provisions:

(1)The department may allocate state HOME funds to local agencies that do not meet the threshold entitlement in an amount not to exceed the difference between the computed entitlement and the threshold.

(2)The department may allocate HOME funds, in an amount determined by the department, to any local agency that does not receive a formula allocation.

(3)The department may allocate HOME funds to housing sponsors who are

eligible to participate and meet the standards required in the housing programs authorized by Part 2 (commencing with Section 50400) of this division.

(b)Notwithstanding any other law, the department may adopt guidelines, rules, policies, or standards of general application to implement this section. The adoption, amendment, or repeal of any guidelines, rules, policies, or standards of general application employed by the

department in implementing this chapter is hereby exempt from the requirements of the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The department shall convene a stakeholder process to inform the development of these guidelines, rules, policies, or standards of general application for the implementation of the program pursuant to this chapter no later than September 1, 2023. Until guidelines, rules, policies, or standards of general application are adopted, the department shall administer the program pursuant to state regulations adopted as of January 1, 2022. Upon adoption of guidelines, rules, policies, or standards of general application, existing previously adopted state regulations shall be repealed. The repeal of existing state regulations pursuant to this section is hereby exempted from the requirements of the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).