2007 California Health and Safety Code Article 4. Program Operations

CA Codes (hsc:50893-50895)

50893.  The department shall make, or undertake commitments to make,
construction or rehabilitation loans, including land acquisition
costs, and mortgage loans in accordance with subdivisions (a) and (c)
for new construction, and subdivisions (b) and (c) for
rehabilitation, to sponsors to finance the development of community
housing developments and congregate housing developments.  The
development cost payments may be provided as loans to be repaid at 3
percent interest and payments of principal or interest, or both, may
be deferred or made payable over a period of time.  For these
purposes, the department shall enter into regulatory agreements and
other agreements, and security documents, with the sponsors receiving
funds from the fund.  Upon the recordation, the regulatory agreement
and all other agreements or documents included or incorporated by
reference within the regulatory agreement shall constitute
enforceable restrictions upon the property for the term of the loan.
The term of the loan and its schedule for repayment may be extended
by the department for additional 10-year periods as long as the
community housing development or congregate housing development is
operated in a manner consistent with the regulatory agreement and the
sponsor needs an extension in order to continue to operate the
community housing development or congregate housing development in a
manner consistent with this chapter.  However, the term of any loan,
including any extension thereof, shall not exceed the useful life of
the community or congregate housing development for which the loan is
made.
   (a) Loans to sponsors for new construction of community housing
developments or congregate housing developments shall be for terms
not less than 40 years.  After 30 years from the time the loans are
made, the sponsor shall begin to repay the loan in accordance with a
payment plan, as determined by the department, that shall maintain
the rents affordable to eligible households.
   (b) Loans made to sponsors of community housing developments or
congregate housing developments for acquisition and rehabilitation
shall be for terms of not less than 30 years.  Loans made to sponsors
of community housing developments or congregate housing developments
for rehabilitation shall only be for terms of not less than 20
years.  The sponsor may elect to begin to repay the loan at any time
in accordance with a payment plan, as approved by the department,
that shall maintain the rents at levels affordable to eligible
households.
   (c) Notwithstanding any loan payment plan approved by the
department, the department may permit the prepayment of a loan at any
time, on the basis of net cash-flow of a development, provided that
the term of the regulatory agreement shall not be reduced due to any
prepayment.



50893.3.  (a) The cost of development of any common portions of the
development shall be allocated to the fund in the same ratio as the
ratio between assisted and nonassisted units in the community housing
development.
   (b) Not more than 50 percent of the cost of the child care center
and related play area shall be paid for from the account,
notwithstanding the ratio between assisted and nonassisted units.
However, if the department finds that sufficient funding is not
available to pay for the remainder of the cost, the department may
pay for the balance needed from the account.
   (c) The department shall develop an inflation index reflecting the
annual anticipated changes in rental housing development operating
costs from a base year.  The inflation index shall be used by the
sponsor to adjust the initial rent of each unit occupied by an
eligible household to determine the annual rent.  Any sponsor may
appeal to the department for a greater adjustment in rents necessary
to ensure the fiscal integrity of the rental housing development.  If
the department does not respond within 60 days, the request shall be
deemed approved.  A 30-day written notice shall be given to each
eligible household prior to an adjustment in the amount of rent.
   (d) The department annually may approve a reduction in the number
of assisted  units to less than the number agreed upon, or less than
30 percent, only if the department determines that it is necessary to
maintain the fiscal integrity of the development.  If the number of
units occupied by eligible households in the community housing
development ever falls below the number agreed to by the department
and sponsor, then the next units which become available for occupancy
shall be made available on a priority basis to eligible households,
as required, until the number of units so occupied equals at least
the number specified in the agreement.


50894.  (a) Where loans will be used in conjunction with federal and
other state housing assistance or tax credits, and a conflict exists
between the other state and federal program requirements and this
chapter, the requirements of this chapter may be waived only to the
extent necessary to permit the federal or other state financial
participation or eligibility for tax credits.
   Where a conflict exists between any state or federal law or
regulation regarding nondiscrimination and this chapter, the
requirements of this chapter may be waived only to the extent
necessary to bring this chapter in compliance with the law or
regulation regarding nondiscrimination.



50895.  No rule, policy, or standard of general application employed
by the department in implementing this chapter shall be subject to
the requirements of Chapter 3.5 (commencing with Section 11340) of
Part 1 of Title 2 of the Government Code.