(a) A local government may submit an application to the Department of Housing and Community Development for a grant or no-interest loan, or both, to support the local government’s efforts to develop a specific plan and accompanying environmental impact report within a Workforce Housing Opportunity Zone established pursuant to this article. Upon appropriation by the Legislature, moneys shall be disbursed from the Treasurer to the Department of Housing and Community Development for the purpose of issuing grants or loans, or both, pursuant to this subdivision.
(b) The Department of Housing and Community Development may adopt, amend, or repeal guidelines, that shall include public comment, to implement the grant or loan program authorized by this article. The guidelines shall not be subject to the requirements 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).
(c) A local government shall explain as part of its application, to the satisfaction of the Department of Housing and Community Development, the source of funding that will be used to repay a loan. A local government may include as one source of funding a fee imposed on a developer within the zone as provided in subdivision (e) of Section 65621.