50530. (a) Large numbers of Californians face excessive housing
costs and live in overcrowded or substandard housing units. In order
to facilitate an increase in the supply of housing, the state has
created and funded several predevelopment loan programs, the purposes
of which have been to provide interim financing to housing sponsors
to cover the planning and development costs associated with the
development of new housing.
(b) A more efficient method to address the need to provide interim
financing would be through the operation of a single omnibus
predevelopment loan program.
(c) It is the intent of the Legislature that the Predevelopment
Loan Program as contained in this chapter be used as the vehicle for
the department's ongoing urban and rural predevelopment programs as
well as specially directed programs as may be funded by the
Legislature from time to time. In particular, the Predevelopment Loan
Program, as amended, is intended to take the place of the following
department programs:
(1) The Rural Predevelopment Loan Program previously established
by Chapter 3.1 (commencing with Section 50515).
(2) The preservation predevelopment loans authorized by and
subject to Item 2240-101-0001 of the Budget Act of 1999, Item
2240-106-0001 of the Budget Act of 2000, and Item 2240-106-0001 of
the Budget Act of 2001.
(3) The jobs-housing predevelopment loans provided for in Chapter
3.7 (commencing with Section 50540).
50530.5. As used in this chapter:
(a) "Housing" includes, but is not limited to, manufactured
housing.
(b) "Predevelopment loan" means a loan for required expenses,
other than administrative and construction, which are incurred by
eligible sponsors in the process of, and prior to, securing long-term
financing for construction, conversion, preservation, or
rehabilitation of assisted housing, and which are recoverable once
long-term financing is obtained. The purposes for which
predevelopment loans may be made include, but are not limited to, the
costs of, or the costs associated with, land purchase or options to
buy land; options or deposits to buy or preserve existing
government-assisted rental housing for the purpose of preserving the
affordability of the units; professional services such as
architectural, engineering, or legal services; permit or application
fees; and bonding, site preparation, related water or sewer
development, or material expenses. In addition, the loans may be made
for the purpose of extending the time for exercising an option or
extending the time period for repayment of an advance previously
obtained. These loan funds may be deposited in banks as compensating
balances to establish lines of credit for participating nonprofit
corporations.
(c) "Fund" means the Predevelopment Loan Fund which is replenished
continuously by repayments of principal on loans made from the fund.
(d) "Land purchase loan" means a loan for the costs incurred by an
eligible sponsor in obtaining an option on, or purchasing suitable
land for, the future development of assisted housing, including, but
not limited to, costs associated with transfer of title, appraisals,
payment of property taxes, surveys, and necessary maintenance of the
land.
(e) "Eligible sponsors" means local governmental agencies,
nonprofit corporations, including cooperative housing corporations,
limited liability companies where all of the members are nonprofit
public benefit corporations, and limited partnerships, as defined in
subdivision (f).
(f) "Limited partnerships" means limited partnerships where all of
the general partners are either nonprofit public benefit
corporations, limited liability companies where all of the members
are nonprofit public benefit corporations, or a combination of
nonprofit public benefit corporations and limited liability companies
where all of the members are nonprofit public benefit corporations.
50531. (a) The Urban Predevelopment Loan Fund is hereby renamed the
Predevelopment Loan Fund.
(b) Notwithstanding Section 13340 of the Government Code, all
money in the fund, including any interest on loans made from the
fund, is hereby continuously appropriated to the department for
carrying out the purposes of this chapter, together with interest as
provided in that section. The fund shall be a revolving loan fund
that shall be used to make predevelopment loans and land purchase
loans to eligible sponsors for assisted housing for occupancy
primarily by persons of low income.
(c) All interest, dividends, and pecuniary gains from investments
or deposits of moneys in the fund shall accrue to the fund,
notwithstanding Section 16305.7 of the Government Code. There shall
be paid into the fund all of the following:
(1) Any moneys appropriated and made available by the Legislature
for the purposes of the fund.
(2) Any moneys that the department receives in repayment of loans
made from the fund, including any interest on loans made from the
fund.
(3) Any other moneys that may be made available to the department
for the purposes of this chapter from any other source.
(d) Notwithstanding any other provision of law, on the effective
date of this subdivision, or as otherwise specified in this section,
the following fund balances, as well as any subsequent income derived
from loans, including principal and interest, or grants made for the
programs identified below, shall be transferred from the funds in
which they are currently deposited into the Predevelopment Loan Fund:
(1) Any funds remaining in the Rural Predevelopment Loan Fund
established by Section 50516 and any repayments of these funds.
(2) Any unencumbered funds remaining for the preservation
predevelopment loans authorized by and subject to Item 2240-101-0001
of the Budget Act of 1999 and Item 2240-106-0001 of the Budget Act of
2000 and deposited in the Rental Housing Construction Fund
established by Section 50740 and any repayments of these loaned
funds.
(3) All funds appropriated by and subject to Item 2240-106-0001 of
the Budget Act of 2001.
(4) Any unencumbered funds remaining and any income and repayments
from these loaned funds made for the jobs-housing predevelopment
loans authorized by Item 2240-114-0001 of the Budget Act of 2000 to
the extent that those funds remain unencumbered in the Rental Housing
Construction Fund established by Section 50740.
(5) Any unencumbered funds, or any loan repayments, of the former
Urban Predevelopment Loan Program that may have been received on or
after June 30, 1999, and transferred or deposited into the Rental
Housing Construction Fund established by Section 50740.
50532. The fund shall be administered by the director and any
persons within the department designated by the director, in
accordance with all of the following requirements:
(a) The department shall not commit more than 20 percent of the
total moneys appropriated to the fund to any single borrower at any
point in time.
(b) The department shall require adequate security for all loans
made from the fund. For the purposes of this subdivision, "adequate
security" includes, but need not be limited to, a security interest
in any property purchased with fund moneys, a promissory note, or an
assignment of a land option, except that in the case of Indian trust
land a mortgage on a leasehold interest in the property shall be
acceptable.
(c) No predevelopment loan may be made pursuant to this chapter
unless the department may reasonably anticipate that a commitment can
be obtained by an eligible sponsor for construction financing or
long-term financing that will permit occupancy primarily by persons
of low income, as specified in subdivision (b) of Section 50531. The
department may make land purchase loans to eligible sponsors to
enable those sponsors to exercise options or to purchase land on
which no option can be obtained even though the sponsor is not able
at the time the loan is made to proceed with the development of
assisted housing on the purchased site. If the eligible sponsor is
unable to proceed with the development of assisted housing on the
purchased site within three years of its acquisition, the sponsor,
upon demand of the department, shall convey the site to the
department. The department shall dispose of the site in accordance
with subdivision (o) of Section 50406, and the net proceeds shall be
paid into the fund.
(d) The department may establish alternate project selection
processes, threshold requirements, and priorities for funds
appropriated for special purposes. These alternate processes,
requirements, and priorities shall be tied to the specific needs and
objectives for which the funds have been appropriated.
(e) The department shall, from time to time, direct the Treasurer
to invest moneys of the fund which are not required for its current
needs in eligible securities which the department designates from
among those specified in Section 16430 of the Government Code. The
department may direct the Treasurer to deposit moneys from the fund
in interest-bearing accounts in state or national banks or other
financial institutions having principal offices in this state. The
department may alternatively require the transfer of moneys in the
fund to the Surplus Money Investment Fund for investment pursuant to
Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of
Division 4 of Title 2 of the Government Code. All interest,
dividends, and pecuniary gains from those investments or deposits
shall accrue to the fund.
(f) In complying with Section 50408, the department shall also
report annually to the Legislature and the Governor on the
administration of the fund. The report shall include, but need not be
limited to, all of the following information:
(1) The number of units assisted.
(2) The average income of households assisted and the distribution
of annual incomes among assisted households.
(3) The rents in assisted units.
(4) The number and amount of loans made to each eligible sponsor
in the preceding year.
(5) Data on the number of delinquencies and defaults.
(6) Recommendations, as needed, to improve the operation of the
fund.
(7) The number of loans made at interest rates lower than 7
percent per annum, and the income of households assisted by those
loans.
(8) The public transportation services conveniently available to
assisted households.
(9) The number of manufactured housing units assisted under
Section 50531 and this section.
(10) The location, size, and cost of land, and option rights
purchased with land purchase loans.
(g) (1) Except as provided in paragraph (2), the balance of any
loan made from the fund or its predecessor fund which remains unpaid
on September 22, 1983, except any portion which is delinquent, and
all loans made from the fund on or after that date, shall bear
interest at a rate of 3 percent per annum.
(2) The department may reduce or eliminate interest on the loans,
if, in the exercise of sound discretion, the department determines
that action is necessary for the provision of decent housing to very
low income households, as described in Section 50105. However, if the
department eliminates interest on a loan, it shall charge a loan
origination fee not to exceed 2 percent of the loan amount.
(h) To the extent feasible, the department shall ensure a
reasonable geographic distribution of the funds. Other things being
equal, the department shall give priority to assisting development
that meets either of the following requirements:
(1) It will be located in public transit corridors.
(2) It will be used for the preservation and acquisition of
existing government-assisted rental housing at risk of conversion to
market-rate use. Within this category, the department shall give
priority to those applications that include matching financing from
local redevelopment agencies or federal programs.
(i) The department may make predevelopment loans or land purchase
loans for the development of mobilehome parks and manufactured
housing subdivisions.
50530. (a) Large numbers of Californians face excessive housing
costs and live in overcrowded or substandard housing units. In order
to facilitate an increase in the supply of housing, the state has
created and funded several predevelopment loan programs, the purposes
of which have been to provide interim financing to housing sponsors
to cover the planning and development costs associated with the
development of new housing.
(b) A more efficient method to address the need to provide interim
financing would be through the operation of a single omnibus
predevelopment loan program.
(c) It is the intent of the Legislature that the Predevelopment
Loan Program as contained in this chapter be used as the vehicle for
the department's ongoing urban and rural predevelopment programs as
well as specially directed programs as may be funded by the
Legislature from time to time. In particular, the Predevelopment Loan
Program, as amended, is intended to take the place of the following
department programs:
(1) The Rural Predevelopment Loan Program previously established
by Chapter 3.1 (commencing with Section 50515).
(2) The preservation predevelopment loans authorized by and
subject to Item 2240-101-0001 of the Budget Act of 1999, Item
2240-106-0001 of the Budget Act of 2000, and Item 2240-106-0001 of
the Budget Act of 2001.
(3) The jobs-housing predevelopment loans provided for in Chapter
3.7 (commencing with Section 50540).
50530.5. As used in this chapter:
(a) "Housing" includes, but is not limited to, manufactured
housing.
(b) "Predevelopment loan" means a loan for required expenses,
other than administrative and construction, which are incurred by
eligible sponsors in the process of, and prior to, securing long-term
financing for construction, conversion, preservation, or
rehabilitation of assisted housing, and which are recoverable once
long-term financing is obtained. The purposes for which
predevelopment loans may be made include, but are not limited to, the
costs of, or the costs associated with, land purchase or options to
buy land; options or deposits to buy or preserve existing
government-assisted rental housing for the purpose of preserving the
affordability of the units; professional services such as
architectural, engineering, or legal services; permit or application
fees; and bonding, site preparation, related water or sewer
development, or material expenses. In addition, the loans may be made
for the purpose of extending the time for exercising an option or
extending the time period for repayment of an advance previously
obtained. These loan funds may be deposited in banks as compensating
balances to establish lines of credit for participating nonprofit
corporations.
(c) "Fund" means the Predevelopment Loan Fund which is replenished
continuously by repayments of principal on loans made from the fund.
(d) "Land purchase loan" means a loan for the costs incurred by an
eligible sponsor in obtaining an option on, or purchasing suitable
land for, the future development of assisted housing, including, but
not limited to, costs associated with transfer of title, appraisals,
payment of property taxes, surveys, and necessary maintenance of the
land.
(e) "Eligible sponsors" means local governmental agencies,
nonprofit corporations, including cooperative housing corporations,
limited liability companies where all of the members are nonprofit
public benefit corporations, and limited partnerships, as defined in
subdivision (f).
(f) "Limited partnerships" means limited partnerships where all of
the general partners are either nonprofit public benefit
corporations, limited liability companies where all of the members
are nonprofit public benefit corporations, or a combination of
nonprofit public benefit corporations and limited liability companies
where all of the members are nonprofit public benefit corporations.
50531. (a) The Urban Predevelopment Loan Fund is hereby renamed the
Predevelopment Loan Fund.
(b) Notwithstanding Section 13340 of the Government Code, all
money in the fund, including any interest on loans made from the
fund, is hereby continuously appropriated to the department for
carrying out the purposes of this chapter, together with interest as
provided in that section. The fund shall be a revolving loan fund
that shall be used to make predevelopment loans and land purchase
loans to eligible sponsors for assisted housing for occupancy
primarily by persons of low income.
(c) All interest, dividends, and pecuniary gains from investments
or deposits of moneys in the fund shall accrue to the fund,
notwithstanding Section 16305.7 of the Government Code. There shall
be paid into the fund all of the following:
(1) Any moneys appropriated and made available by the Legislature
for the purposes of the fund.
(2) Any moneys that the department receives in repayment of loans
made from the fund, including any interest on loans made from the
fund.
(3) Any other moneys that may be made available to the department
for the purposes of this chapter from any other source.
(d) Notwithstanding any other provision of law, on the effective
date of this subdivision, or as otherwise specified in this section,
the following fund balances, as well as any subsequent income derived
from loans, including principal and interest, or grants made for the
programs identified below, shall be transferred from the funds in
which they are currently deposited into the Predevelopment Loan Fund:
(1) Any funds remaining in the Rural Predevelopment Loan Fund
established by Section 50516 and any repayments of these funds.
(2) Any unencumbered funds remaining for the preservation
predevelopment loans authorized by and subject to Item 2240-101-0001
of the Budget Act of 1999 and Item 2240-106-0001 of the Budget Act of
2000 and deposited in the Rental Housing Construction Fund
established by Section 50740 and any repayments of these loaned
funds.
(3) All funds appropriated by and subject to Item 2240-106-0001 of
the Budget Act of 2001.
(4) Any unencumbered funds remaining and any income and repayments
from these loaned funds made for the jobs-housing predevelopment
loans authorized by Item 2240-114-0001 of the Budget Act of 2000 to
the extent that those funds remain unencumbered in the Rental Housing
Construction Fund established by Section 50740.
(5) Any unencumbered funds, or any loan repayments, of the former
Urban Predevelopment Loan Program that may have been received on or
after June 30, 1999, and transferred or deposited into the Rental
Housing Construction Fund established by Section 50740.
50532. The fund shall be administered by the director and any
persons within the department designated by the director, in
accordance with all of the following requirements:
(a) The department shall not commit more than 20 percent of the
total moneys appropriated to the fund to any single borrower at any
point in time.
(b) The department shall require adequate security for all loans
made from the fund. For the purposes of this subdivision, "adequate
security" includes, but need not be limited to, a security interest
in any property purchased with fund moneys, a promissory note, or an
assignment of a land option, except that in the case of Indian trust
land a mortgage on a leasehold interest in the property shall be
acceptable.
(c) No predevelopment loan may be made pursuant to this chapter
unless the department may reasonably anticipate that a commitment can
be obtained by an eligible sponsor for construction financing or
long-term financing that will permit occupancy primarily by persons
of low income, as specified in subdivision (b) of Section 50531. The
department may make land purchase loans to eligible sponsors to
enable those sponsors to exercise options or to purchase land on
which no option can be obtained even though the sponsor is not able
at the time the loan is made to proceed with the development of
assisted housing on the purchased site. If the eligible sponsor is
unable to proceed with the development of assisted housing on the
purchased site within three years of its acquisition, the sponsor,
upon demand of the department, shall convey the site to the
department. The department shall dispose of the site in accordance
with subdivision (o) of Section 50406, and the net proceeds shall be
paid into the fund.
(d) The department may establish alternate project selection
processes, threshold requirements, and priorities for funds
appropriated for special purposes. These alternate processes,
requirements, and priorities shall be tied to the specific needs and
objectives for which the funds have been appropriated.
(e) The department shall, from time to time, direct the Treasurer
to invest moneys of the fund which are not required for its current
needs in eligible securities which the department designates from
among those specified in Section 16430 of the Government Code. The
department may direct the Treasurer to deposit moneys from the fund
in interest-bearing accounts in state or national banks or other
financial institutions having principal offices in this state. The
department may alternatively require the transfer of moneys in the
fund to the Surplus Money Investment Fund for investment pursuant to
Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of
Division 4 of Title 2 of the Government Code. All interest,
dividends, and pecuniary gains from those investments or deposits
shall accrue to the fund.
(f) In complying with Section 50408, the department shall also
report annually to the Legislature and the Governor on the
administration of the fund. The report shall include, but need not be
limited to, all of the following information:
(1) The number of units assisted.
(2) The average income of households assisted and the distribution
of annual incomes among assisted households.
(3) The rents in assisted units.
(4) The number and amount of loans made to each eligible sponsor
in the preceding year.
(5) Data on the number of delinquencies and defaults.
(6) Recommendations, as needed, to improve the operation of the
fund.
(7) The number of loans made at interest rates lower than 7
percent per annum, and the income of households assisted by those
loans.
(8) The public transportation services conveniently available to
assisted households.
(9) The number of manufactured housing units assisted under
Section 50531 and this section.
(10) The location, size, and cost of land, and option rights
purchased with land purchase loans.
(g) (1) Except as provided in paragraph (2), the balance of any
loan made from the fund or its predecessor fund which remains unpaid
on September 22, 1983, except any portion which is delinquent, and
all loans made from the fund on or after that date, shall bear
interest at a rate of 3 percent per annum.
(2) The department may reduce or eliminate interest on the loans,
if, in the exercise of sound discretion, the department determines
that action is necessary for the provision of decent housing to very
low income households, as described in Section 50105. However, if the
department eliminates interest on a loan, it shall charge a loan
origination fee not to exceed 2 percent of the loan amount.
(h) To the extent feasible, the department shall ensure a
reasonable geographic distribution of the funds. Other things being
equal, the department shall give priority to assisting development
that meets either of the following requirements:
(1) It will be located in public transit corridors.
(2) It will be used for the preservation and acquisition of
existing government-assisted rental housing at risk of conversion to
market-rate use. Within this category, the department shall give
priority to those applications that include matching financing from
local redevelopment agencies or federal programs.
(i) The department may make predevelopment loans or land purchase
loans for the development of mobilehome parks and manufactured
housing subdivisions.
50530. (a) Large numbers of Californians face excessive housing
costs and live in overcrowded or substandard housing units. In order
to facilitate an increase in the supply of housing, the state has
created and funded several predevelopment loan programs, the purposes
of which have been to provide interim financing to housing sponsors
to cover the planning and development costs associated with the
development of new housing.
(b) A more efficient method to address the need to provide interim
financing would be through the operation of a single omnibus
predevelopment loan program.
(c) It is the intent of the Legislature that the Predevelopment
Loan Program as contained in this chapter be used as the vehicle for
the department's ongoing urban and rural predevelopment programs as
well as specially directed programs as may be funded by the
Legislature from time to time. In particular, the Predevelopment Loan
Program, as amended, is intended to take the place of the following
department programs:
(1) The Rural Predevelopment Loan Program previously established
by Chapter 3.1 (commencing with Section 50515).
(2) The preservation predevelopment loans authorized by and
subject to Item 2240-101-0001 of the Budget Act of 1999, Item
2240-106-0001 of the Budget Act of 2000, and Item 2240-106-0001 of
the Budget Act of 2001.
(3) The jobs-housing predevelopment loans provided for in Chapter
3.7 (commencing with Section 50540).
50530.5. As used in this chapter:
(a) "Housing" includes, but is not limited to, manufactured
housing.
(b) "Predevelopment loan" means a loan for required expenses,
other than administrative and construction, which are incurred by
eligible sponsors in the process of, and prior to, securing long-term
financing for construction, conversion, preservation, or
rehabilitation of assisted housing, and which are recoverable once
long-term financing is obtained. The purposes for which
predevelopment loans may be made include, but are not limited to, the
costs of, or the costs associated with, land purchase or options to
buy land; options or deposits to buy or preserve existing
government-assisted rental housing for the purpose of preserving the
affordability of the units; professional services such as
architectural, engineering, or legal services; permit or application
fees; and bonding, site preparation, related water or sewer
development, or material expenses. In addition, the loans may be made
for the purpose of extending the time for exercising an option or
extending the time period for repayment of an advance previously
obtained. These loan funds may be deposited in banks as compensating
balances to establish lines of credit for participating nonprofit
corporations.
(c) "Fund" means the Predevelopment Loan Fund which is replenished
continuously by repayments of principal on loans made from the fund.
(d) "Land purchase loan" means a loan for the costs incurred by an
eligible sponsor in obtaining an option on, or purchasing suitable
land for, the future development of assisted housing, including, but
not limited to, costs associated with transfer of title, appraisals,
payment of property taxes, surveys, and necessary maintenance of the
land.
(e) "Eligible sponsors" means local governmental agencies,
nonprofit corporations, including cooperative housing corporations,
limited liability companies where all of the members are nonprofit
public benefit corporations, and limited partnerships, as defined in
subdivision (f).
(f) "Limited partnerships" means limited partnerships where all of
the general partners are either nonprofit public benefit
corporations, limited liability companies where all of the members
are nonprofit public benefit corporations, or a combination of
nonprofit public benefit corporations and limited liability companies
where all of the members are nonprofit public benefit corporations.
50531. (a) The Urban Predevelopment Loan Fund is hereby renamed the
Predevelopment Loan Fund.
(b) Notwithstanding Section 13340 of the Government Code, all
money in the fund, including any interest on loans made from the
fund, is hereby continuously appropriated to the department for
carrying out the purposes of this chapter, together with interest as
provided in that section. The fund shall be a revolving loan fund
that shall be used to make predevelopment loans and land purchase
loans to eligible sponsors for assisted housing for occupancy
primarily by persons of low income.
(c) All interest, dividends, and pecuniary gains from investments
or deposits of moneys in the fund shall accrue to the fund,
notwithstanding Section 16305.7 of the Government Code. There shall
be paid into the fund all of the following:
(1) Any moneys appropriated and made available by the Legislature
for the purposes of the fund.
(2) Any moneys that the department receives in repayment of loans
made from the fund, including any interest on loans made from the
fund.
(3) Any other moneys that may be made available to the department
for the purposes of this chapter from any other source.
(d) Notwithstanding any other provision of law, on the effective
date of this subdivision, or as otherwise specified in this section,
the following fund balances, as well as any subsequent income derived
from loans, including principal and interest, or grants made for the
programs identified below, shall be transferred from the funds in
which they are currently deposited into the Predevelopment Loan Fund:
(1) Any funds remaining in the Rural Predevelopment Loan Fund
established by Section 50516 and any repayments of these funds.
(2) Any unencumbered funds remaining for the preservation
predevelopment loans authorized by and subject to Item 2240-101-0001
of the Budget Act of 1999 and Item 2240-106-0001 of the Budget Act of
2000 and deposited in the Rental Housing Construction Fund
established by Section 50740 and any repayments of these loaned
funds.
(3) All funds appropriated by and subject to Item 2240-106-0001 of
the Budget Act of 2001.
(4) Any unencumbered funds remaining and any income and repayments
from these loaned funds made for the jobs-housing predevelopment
loans authorized by Item 2240-114-0001 of the Budget Act of 2000 to
the extent that those funds remain unencumbered in the Rental Housing
Construction Fund established by Section 50740.
(5) Any unencumbered funds, or any loan repayments, of the former
Urban Predevelopment Loan Program that may have been received on or
after June 30, 1999, and transferred or deposited into the Rental
Housing Construction Fund established by Section 50740.
50532. The fund shall be administered by the director and any
persons within the department designated by the director, in
accordance with all of the following requirements:
(a) The department shall not commit more than 20 percent of the
total moneys appropriated to the fund to any single borrower at any
point in time.
(b) The department shall require adequate security for all loans
made from the fund. For the purposes of this subdivision, "adequate
security" includes, but need not be limited to, a security interest
in any property purchased with fund moneys, a promissory note, or an
assignment of a land option, except that in the case of Indian trust
land a mortgage on a leasehold interest in the property shall be
acceptable.
(c) No predevelopment loan may be made pursuant to this chapter
unless the department may reasonably anticipate that a commitment can
be obtained by an eligible sponsor for construction financing or
long-term financing that will permit occupancy primarily by persons
of low income, as specified in subdivision (b) of Section 50531. The
department may make land purchase loans to eligible sponsors to
enable those sponsors to exercise options or to purchase land on
which no option can be obtained even though the sponsor is not able
at the time the loan is made to proceed with the development of
assisted housing on the purchased site. If the eligible sponsor is
unable to proceed with the development of assisted housing on the
purchased site within three years of its acquisition, the sponsor,
upon demand of the department, shall convey the site to the
department. The department shall dispose of the site in accordance
with subdivision (o) of Section 50406, and the net proceeds shall be
paid into the fund.
(d) The department may establish alternate project selection
processes, threshold requirements, and priorities for funds
appropriated for special purposes. These alternate processes,
requirements, and priorities shall be tied to the specific needs and
objectives for which the funds have been appropriated.
(e) The department shall, from time to time, direct the Treasurer
to invest moneys of the fund which are not required for its current
needs in eligible securities which the department designates from
among those specified in Section 16430 of the Government Code. The
department may direct the Treasurer to deposit moneys from the fund
in interest-bearing accounts in state or national banks or other
financial institutions having principal offices in this state. The
department may alternatively require the transfer of moneys in the
fund to the Surplus Money Investment Fund for investment pursuant to
Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of
Division 4 of Title 2 of the Government Code. All interest,
dividends, and pecuniary gains from those investments or deposits
shall accrue to the fund.
(f) In complying with Section 50408, the department shall also
report annually to the Legislature and the Governor on the
administration of the fund. The report shall include, but need not be
limited to, all of the following information:
(1) The number of units assisted.
(2) The average income of households assisted and the distribution
of annual incomes among assisted households.
(3) The rents in assisted units.
(4) The number and amount of loans made to each eligible sponsor
in the preceding year.
(5) Data on the number of delinquencies and defaults.
(6) Recommendations, as needed, to improve the operation of the
fund.
(7) The number of loans made at interest rates lower than 7
percent per annum, and the income of households assisted by those
loans.
(8) The public transportation services conveniently available to
assisted households.
(9) The number of manufactured housing units assisted under
Section 50531 and this section.
(10) The location, size, and cost of land, and option rights
purchased with land purchase loans.
(g) (1) Except as provided in paragraph (2), the balance of any
loan made from the fund or its predecessor fund which remains unpaid
on September 22, 1983, except any portion which is delinquent, and
all loans made from the fund on or after that date, shall bear
interest at a rate of 3 percent per annum.
(2) The department may reduce or eliminate interest on the loans,
if, in the exercise of sound discretion, the department determines
that action is necessary for the provision of decent housing to very
low income households, as described in Section 50105. However, if the
department eliminates interest on a loan, it shall charge a loan
origination fee not to exceed 2 percent of the loan amount.
(h) To the extent feasible, the department shall ensure a
reasonable geographic distribution of the funds. Other things being
equal, the department shall give priority to assisting development
that meets either of the following requirements:
(1) It will be located in public transit corridors.
(2) It will be used for the preservation and acquisition of
existing government-assisted rental housing at risk of conversion to
market-rate use. Within this category, the department shall give
priority to those applications that include matching financing from
local redevelopment agencies or federal programs.
(i) The department may make predevelopment loans or land purchase
loans for the development of mobilehome parks and manufactured
housing subdivisions.
