State Codes and Statutes

Statutes > California > Hsc > 50515.2-50517.10

HEALTH AND SAFETY CODE
SECTION 50515.2-50517.10



50515.2.  (a) Notwithstanding any other law, the department may
extend the term of an existing multifamily housing loan made by the
department under the original Rental Housing Construction Program
established by Chapter 9 (commencing with Section 50735); the Special
User Housing Rehabilitation Program established by Section 50670; or
the Deferred Payment Rehabilitation Loan Program established by
Chapter 6.5 (commencing with Section 50660) upon the request of any
borrower subject to the following conditions:
   (1) The borrower shall provide to the department a complete report
showing all existing tenants, their incomes, as reported in the most
recent annual income certification, and the rents currently charged
to each tenant.
   (2) The borrower shall agree to an extension of the term of the
loan by an additional 55 years from the date of departmental
approval. If the department determines that the remaining useful life
of a project is less than 55 years, the loan may be extended for the
remaining useful life of the project, but not less than 30 years.
The department may convert the existing outstanding principal and any
accrued interest into the new loan amount. The interest rate on the
extended term shall be 3 percent simple interest. All future payments
of principal and interest may be deferred except for a percentage of
interest equal to the percentage charged in the Multifamily Housing
Program (Chapter 6.7 (commencing with Section 50675)) for the
department's ongoing monitoring and management responsibilities.
   (3) The borrower shall agree to amend or replace the existing
regulatory agreement to include terms generally equivalent to those
used in the Multifamily Housing Program. In addition, the borrower
shall agree to replace, amend, or revise any other loan documents as
necessary to accomplish the purposes of this section.
   (4) (A) The borrower shall agree to a rent schedule that ensures
that all assisted units are affordable to households earning no more
than 60 percent of the area median income and that at least 35
percent of all assisted units shall be reserved for, affordable to,
and occupied by, households earning less than or equal to the
midlevel target used by the Multifamily Housing Program, unless the
department finds both of the following:
   (i) That the project income is insufficient to maintain fiscal
integrity, as that term is used in the Multifamily Housing Program,
and is insufficient to maintain the rents required under this
subparagraph pursuant to the terms of the Uniform Multifamily
Regulations, or any successor regulations, except that commercial
vacancy loss shall be projected based on the operating history of the
project, commercial vacancy rates in the neighborhood, and similar
factors typically used by commercial lenders.
   (ii) That the borrower has exhausted all available potential
sources of rental subsidies, including, but not limited to, federal,
state, and local funds.
   (B) If the department finds that a reduction in the percentage of
assisted units to less than 35 percent of assisted units is
justified, it shall ensure that the largest possible percentage is
reserved for the targeted households.
   (C) For the purposes of this paragraph, "midlevel target used by
the Multifamily Housing Program" shall mean the following:
   (i) For counties with an area median income of 110 percent or less
of the state median income, it shall mean households earning 30
percent of state median income, expressed as a percentage of area
median income.
   (ii) For counties with an area median income that exceeds 110
percent of the state median income, it shall mean households earning
less than 35 percent of state median income, expressed as a
percentage of area median income.
   (5) No tenant residing in a project at the time of an extension
authorized by this section may be displaced as a result of the
regulatory revisions authorized by this section, and, for the initial
operating year after approval of the extension, that tenant may not
have his or her rent increased above the amounts specified in his or
her preexisting regulatory agreements, except that no tenant may pay
less than 30 percent of his or her income, calculated pursuant to the
Multifamily Housing Program criteria. If a rent increase authorized
under this section would exceed a 10 percent increase in payment for
a lower income tenant, the project owner shall phase in the increase
so that it does not exceed 10 percent per year. After the initial
operating year after the extension authorized under this section, the
rents for all regulated units that are subject to the new agreement
may be adjusted in the percentage calculated pursuant to the
Multifamily Housing Program criteria, plus the amount necessary to
bring an individual tenant up to the 30-percent-of-income standard,
provided that the total annual increase does not exceed 10 percent.
Rent adjustments for all tenants occupying assisted units at the time
of the extension shall be based on the tenant's initial rent
established under this paragraph. Upon vacancy of an assisted unit
occupied at the time of the extension, the new base rent for that
unit shall be established consistent with the standards used in the
Multifamily Housing Program for the regulated income band, subject to
the reservation of units required under paragraph (4).
   (b) The department may approve an extension of a loan made by the
department if it determines that the project has, or will have after
rehabilitation or repairs, a potential remaining useful life of at
least 30 years and that the project is deemed financially feasible
pursuant to the terms of its Uniform Multifamily Regulations or
successor regulations.
   (c) The department may subordinate its loan or loans to refinance
existing senior debt and to additional permanent financing if that
additional senior debt is used only for rehabilitation, repairs, or
improvements, or both, including related soft costs, that are modest
in size, scope, and cost, as determined by the department and
necessary to maintain and extend the useful life of the project.
   (d) (1) For the purposes of this subdivision, the "agency projects"
are the 26 projects assisted through the original Rental Housing
Construction Program with funds administered by the California
Housing Finance Agency.
   (2) Upon the request of a borrower the agency may extend the term
of an existing loan for an agency project by a period that is equal
to the remaining useful life of the project, as determined by the
agency, but not more than 55 years and not less than 30 years from
the date of agency approval, under terms that are substantially
consistent with the purposes of this section, if all of the following
conditions are met:
   (A) The borrower shall provide to the agency the report described
in paragraph (1) of subdivision (a).
   (B) The extension shall be subject to the conditions set forth in
paragraph (2) of subdivision (a).
   (C) The rent levels and tenant protections described in paragraphs
(4) and (5) of subdivision (a) shall be satisfied, except that the
agency, not the department, shall make the determination required
under clause (i) of subparagraph (A) of paragraph (4) of subdivision
(a) that the project income is insufficient to meet the agency's
affordable multifamily lending program requirements.
   (3) Any determination or approval under this section regarding the
agency projects shall be by the agency rather than the department.
   (4) The borrower and the agency shall amend, replace, or revise
any other loan documents or agreements governing the loans for the
agency projects as necessary to accomplish the purposes of this
section.
   (5) All funds received by the agency for the agency projects,
whether by loan repayment, foreclosure, accrued interest, or
otherwise, shall be used to provide assistance to existing or future
projects financed by or through the agency pursuant to terms
consistent with the agency's affordable multifamily lending programs.
   (e) It is the intent of the Legislature in enacting this section
that the department should manage its reserves for the original
Rental Housing Construction Program in a manner that will allow for
the continuation of current benefits to current low-income tenants
for the longest period of time possible. Accordingly, rent subsidies
shall be continued only for units occupied by lower income tenants
who were in residence at the time of the extension authorized under
this section.
   (f) It is the intent of the Legislature in enacting this section
to provide to the department the flexibility necessary to preserve
the affordable rental units for which the state has already made a
significant public investment. Accordingly, the department may
implement this section through guidelines that shall not be subject
to Chapter 2.5 (commencing with Section 11340) of Part 1 of Title 2
of the Government Code.
   (g) This section shall become operative on July 1, 2008.



50517.5.  (a) (1) The department shall establish the Joe Serna, Jr.
Farmworker Housing Grant Program under which, subject to the
availability of funds therefor, grants or loans, or both, shall be
made to local public entities, nonprofit corporations, limited
liability companies, and limited partnerships, for the construction
or rehabilitation of housing for agricultural employees and their
families or for the acquisition of manufactured housing as part of a
program to address and remedy the impacts of current and potential
displacement of farmworker families from existing labor camps,
mobilehome parks, or other housing. Under this program, grants or
loans, or both, may also be made for the cost of acquiring the land
and any building thereon in connection with housing assisted pursuant
to this section and for the construction and rehabilitation of
related support facilities necessary to the housing. In its
administration of this program, the department shall disburse grants
or loans, or both, to the local public entities, nonprofit
corporations, limited liability companies, or limited partnerships or
may, at the request of the local public entity, nonprofit
corporation, limited liability company, or limited partnership that
sponsors and supervises the rehabilitation or construction program,
disburse grant funds to agricultural employees who are participants
in a rehabilitation or construction program sponsored and supervised
by the local public entity, nonprofit corporation, limited liability
company, or limited partnership. No part of a grant or loan made
pursuant to this section may be used for project organization or
planning.
   (2) Notwithstanding any other provision of this chapter, upon the
request of a grantee the program also may loan funds to a grantee at
no more than 3 percent simple interest. Principal and accumulated
interest is due and payable upon completion of the term of the loan.
For any loan made pursuant to this subdivision, the performance
requirements of the lien shall remain in effect for a period of no
less than the original term of the loan.
   (3) The program shall be administered by the Director of Housing
and Community Development and officers and employees of the
department as he or she may designate.
   (b) (1) The Joe Serna, Jr. Farmworker Housing Grant Fund is hereby
created in the State Treasury. Notwithstanding Section 13340 of the
Government Code, all money in the fund is continuously appropriated
to the department for making grants or loans, or both, pursuant to
this section and Section 50517.10, for purposes of Chapter 8.5
(commencing with Section 50710), and for costs incurred by the
department in administering these programs.
   (2) There shall be paid into the fund the following:
   (A) Any moneys appropriated and made available by the Legislature
for purposes of the fund.
   (B) Any moneys that the department receives in repayment or return
of grants or loans from the fund, including any interest therefrom.
   (C) Any other moneys that may be made available to the department
for the purposes of this chapter from any other source or sources.
   (D) All moneys appropriated to the department for the purposes of
Chapter 8.5 (commencing with Section 50710) and any moneys received
by the department from the occupants of housing or shelter provided
pursuant to Chapter 8.5 (commencing with Section 50710). These moneys
shall be separately accounted for from the other moneys deposited in
the fund.
   (c) (1) Grants and loans made pursuant to this section shall be
matched by grantees with at least equal amounts of federal moneys,
other cash investments, or in-kind contributions.
   (2) For grant or loan requests of not more than five hundred
thousand dollars ($500,000), the department may waive a part of the
matching fund requirement in this subdivision if the grantee
demonstrates an inability, as may be established by the department in
"Notices of Funding Availability," to secure adequate financing from
other sources. Not more than 5 percent of the total amount
appropriated to the department for the purposes of this section may
be used to meet grant or loan requests in which a part of the
matching fund requirement has been waived pursuant to this paragraph.
   (d) With respect to the supervision of grantees, the department
shall do the following:
   (1) Establish minimum capital reserves to be maintained by
grantees.
   (2) Fix and alter from time to time a schedule of rents that may
be necessary to provide residents of housing assisted pursuant to
this section with affordable rents to the extent consistent with the
maintenance of the financial integrity of the housing project. No
grantee shall increase the rent on any unit constructed or
rehabilitated with the assistance of funds provided pursuant to this
section without the prior permission of the department, which shall
be given only if the grantee affirmatively demonstrates that the
increase is required to defray necessary operating costs or avoid
jeopardizing the fiscal integrity of the housing project.
   (3) Determine standards for, and control selection by grantees of,
tenants and subsequent purchasers of housing constructed or
rehabilitated with the assistance of funds provided pursuant to this
section.
   (4) (A) Require as a condition precedent to a grant or loan, or
both, of funds that the applicant have site control that is
satisfactory to the department; that the grantee be record owner in
fee of the assisted real property or provide other security including
a lien on the manufactured home that is satisfactory to the
department to ensure compliance with the construction, financial, and
program obligations; and that the grantee shall have entered into a
written agreement with the department binding upon the grantee and
successors in interest to the grantee. The agreement shall include
the conditions under which the funds advanced may be repaid. The
agreement shall include provisions for a lien on the assisted real
property or manufactured home in favor of the State of California for
the purpose of securing performance of the agreement. The agreement
shall also provide that the lien shall endure until released by the
Director of Housing and Community Development.
   (B) If funds granted or loaned pursuant to this section constitute
less than 25 percent of the total development cost or value,
whichever is applicable, of a project assisted under this section,
the department may adopt, by regulation, criteria for determining the
number of units in a project to which the restrictions on occupancy
contained in the agreement apply. In no event may these regulations
provide for the application of the agreement to a percentage of units
in a project that is less than the percentage of total development
costs that funds granted or loaned pursuant to this section
represent.
   (C) Contemporaneously with the disbursement of the initial funds
to a grantee, the department shall cause to be recorded, in the
office of the county recorder of the county in which the assisted
real property is located, a notice of lien executed by the Director
of Housing and Community Development. The notice of lien shall refer
to the agreement required by this paragraph for which it secures and
it shall include a legal description of the assisted real property
that is subject to the lien. The notice of lien shall be indexed by
the recorder in the Grantor Index to the name of the grantee and in
the Grantee Index to the name of the State of California, Department
of Housing and Community Development. For manufactured housing, the
liens shall be recorded by the department in the same manner as other
manufactured housing liens are recorded. The department shall adopt
by regulation criteria for the determination of the lien period. This
regulation shall take into account whether the property is held by
multifamily rental, single-family ownership, or cooperative ownership
and whether it is new construction or rehabilitative construction.
The lien period for manufactured housing liens for manufactured homes
shall not exceed 10 years.
   (D) Pursuant to regulations adopted by the department, the
department may execute and cause to be recorded in the office of the
recorder of the county in which a notice of lien has been recorded,
or the department, as appropriate, a subordination of the lien. The
regulations adopted by the department shall provide that any
subordination of the lien shall not jeopardize the security interest
of the state and shall further the interest of farmworker housing.
The recitals contained in the subordination shall be conclusive in
favor of any bona fide purchaser or lender relying thereon.
   (E) Prior to funds granted pursuant to this section being used to
finance the acquisition of a manufactured home, the grantee shall
ensure that the home either is already installed in a location where
it will be occupied by the eligible household or that a location has
been leased or otherwise made available for the manufactured home to
be occupied by the eligible household.
   (5) Regulate the terms of occupancy agreements or resale controls,
to be used in housing assisted pursuant to this section.
   (6) Provide linguistically appropriate services and publications,
or require grantees to do so, as necessary to implement the purposes
of this section.
   (7) The agreement between the department and the grantee shall
provide, among other things, that both of the following occur:
   (A) Upon the sale or conveyance of the real property, or any part
thereof, for use other than for agricultural employee occupancy, the
grantee or its successors shall, as a condition for the release of
the lien provided pursuant to paragraph (4), repay to the fund the
department's grant and loan funds.
   (B) Upon the sale or conveyance of the real property or any part
thereof for continued agricultural employee occupancy, the transferee
shall assume the obligation of the transferor and the real property
shall be transferred to the new owner; provided that the transferee
agrees to abide by the agreement entered into between the transferor
and the department and that the new owner takes the property subject
to the lien provided pursuant to paragraph (4), except that this lien
shall, at the time of the transfer of the property to the new owner,
be extended for an additional lien period determined by the
department pursuant to paragraph (4), and the new owner shall not be
credited with the lien period that had run from the time the
transferor had acquired the property to the time of transfer to the
new owner, unless the department determines that it is in the best
interest of the state and consistent with the intent of this section
to so credit the lien period to the new owner. However, the lien
shall have priority as of the recording date of the lien for the
original grantee, pursuant to paragraph (4).
   (e) The department may do any of the following with respect to
grantees:
   (1) Through its agents or employees enter upon and inspect the
lands, buildings, and equipment of a grantee, including books and
records, at any time before, during, or after construction or
rehabilitation of units assisted pursuant to this section. However,
there shall be no entry or inspection of any unit that is occupied,
whether or not any occupant is actually present, without the consent
of the occupant.
   (2) Supervise the operation and maintenance of any housing
assisted pursuant to this section and order repairs as may be
necessary to protect the public interest or the health, safety, or
welfare of occupants of the housing.
   (f) The department shall include in its annual report required by
Section 50408, a current report of the Joe Serna, Jr. Farmworker
Housing Grant Program. The report shall include, but need not be
limited to, (1) the number of households assisted, (2) the average
income of households assisted and the distribution of annual incomes
among assisted households, (3) the rents paid by households assisted,
(4) the number and amount of grants or loans, or both, made to each
grantee in the preceding year, (5) the dollar value of funding
derived from sources other than the state for each project receiving
a grant or loan, or both, under this section, and an identification
of each source, (6) recommendations, as needed, to improve operations
of the program and respecting the desirability of extending its
application to other groups in rural areas identified by the
department as having special need for state housing assistance, and
(7) the number of manufactured housing units assisted under this
section.
   (g) As used in this section:
   (1) "Agricultural employee" has the same meaning as specified in
subdivision (b) of Section 1140.4 of the Labor Code, but also
includes any person who works on or off the farm in the processing of
any agricultural commodity until it is shipped for distribution,
whether or not this person is encompassed within the definition
specified in subdivision (b) of Section 1140.4 of the Labor Code.
   (2) "Grantee" means the local public entity, nonprofit
corporation, limited liability company, or limited partnership that
is awarded the grant or loan, or both, under this section, and, at
the request thereof, may include an agricultural employee receiving
direct payment of a grant for rehabilitation under this section who
occupies the assisted housing both before and after the
rehabilitation and may include an agricultural employee receiving
direct payment of a grant for construction under this section who
will occupy the assisted housing and who is a participant in a
rehabilitation or construction program sponsored and supervised by a
local public entity, nonprofit corporation, limited liability
company, or limited partnership.
   (3) "Housing" may include, but is not necessarily limited to,
conventionally constructed units and manufactured housing installed
pursuant to either Section 18551 or 18613.
   (4) "Limited liability company" means a limited liability company
where all the members are nonprofit public benefit corporations.
   (5) "Limited partnership" means a limited partnership where all of
the general partners are either nonprofit public benefit
corporations, limited liability companies, or a combination of
nonprofit public benefit corporations and limited liability
companies.
   (h) The department may provide the assistance offered pursuant to
this chapter in any area where there is a substantial unmet need for
farmworker housing.



50517.6.  (a) The department may set aside the amount of funds
authorized by subdivision (d) for the purposes of curing or averting
a default on the terms of any loan or other obligation by the
recipient of financial assistance, or bidding at any foreclosure sale
where the default or foreclosure sale would jeopardize the
department's security in the dwelling unit assisted pursuant to this
chapter.
   (b) The department may use the set-aside funds made available
pursuant to this chapter to repair or maintain any dwelling unit
assisted pursuant to this chapter that was acquired to protect the
department's security interest in the dwelling unit.
   (c) The payment or advance of funds by the department pursuant to
this section shall be exclusively within the department's discretion,
and no person shall be deemed to have any entitlement to the payment
or advance of those funds. The amount of any funds expended by the
department for the purposes of curing or averting a default shall be
added to any grant amount secured by the lien and shall be payable to
the department upon demand.
   (d) On the effective date of the act that adds this section, the
department may set aside up to two hundred thousand dollars
($200,000) from the Joe Serna, Jr. Farmworker Housing Grant Fund for
the purposes authorized by this section. On July 1 of each subsequent
fiscal year, the department may set aside, for the purposes of this
section, up to 4 percent of the funds available in the Joe Serna, Jr.
Farmworker Housing Grant Fund on that date.



50517.7.  In counties in which a disaster has been declared by the
Governor pursuant to Chapter 7 (commencing with Section 8550) of
Division 1 of Title 2 of the Government Code and for a period of 12
months after the declaration, the department may provide grants from
the fund established by subdivision (b) of Section 50517.5, subject
to the following terms and conditions, which are applicable only to
this section:
   (a) Grants may be made to local public entities, nonprofit
corporations, and housing owners comprised of either homeowners who
are agricultural employees or owners of rental property used
primarily by agricultural households.
   (b) The department may enter into master agreements with nonprofit
corporations or local public entities or it may enter into contracts
directly with housing owners to carry out the activities authorized
by this section.
   (c) The department may make grants directly to housing owners or
through master agreements for the cost of preparation of applications
for funds, and supervision of expenditures from the fund, including,
but not limited to estimates, work writeups, bidding supervision,
and inspections. Funds granted pursuant to this subdivision shall not
be secured by, and subject to, the liens required by Section
50517.5.
   (d) The department, either directly or through master agreements,
may provide grants to housing owners which shall be used for housing
rehabilitation or acquisition and rehabilitation, and related costs,
other than those costs accruing pursuant to subdivision (c). Only
those funds from the fund which are actually utilized pursuant to
this subdivision shall be secured by, and subject to, the liens
required by Section 50517.5.
   (e) The department may waive the matching requirements of
subdivision (c) of Section 50517.5.



50517.8.  A household deemed eligible by the United States
Department of Agriculture, under the Rural Housing Loan Program of
Section 502 of Title V of the Housing Act of 1949 (42 U.S.C. Sec.
1472 et seq.), on the basis of the household's ratio of housing costs
to household income shall be deemed eligible for a grant pursuant to
this chapter notwithstanding the department's calculation of the
ratio of housing costs to income utilizing different and additional
housing cost factors.



50517.9.  (a) In enacting this section, it is the intent of the
Legislature to provide disaster assistance for farmworkers displaced
by the 1997 floods in the most expeditious and fiscally sound manner
possible. It is the intent of the Legislature that the Department of
Housing and Community Development administer this section in
accordance with those goals.
   (b) In counties in which a disaster has been declared by the
Governor pursuant to Section 8625 of the Government Code, and for a
period of 12 months after the declaration, the department may award
funds for the purposes of this section, subject to the following
terms and conditions:
   (1) Loans may be made to local public entities, nonprofit
corporations, and private property owners to repair, rehabilitate, or
replace housing previously used exclusively by migrant farmworker
households or unaccompanied migrant farmworker adults, which will be
used in the future for those purposes. Loan funds may be used to
acquire or lease "manufactured structures," which, for the purposes
of this section, means structures subject to Part 2 (commencing with
Section 18000) of Division 13. Private property owners shall be
eligible for loans only to the extent that other federal and state
resources, private insurance proceeds, or private institutional
lending sources are not available in a timely manner or do not
provide the coverage needed to rehabilitate or reconstruct the
housing without increasing the rent above that charged for the units
prior to the disaster.
   (2) The department may enter into contracts directly with
nonprofit corporations, local public entities, or private property
owners to carry out the activities authorized by this section.
   (3) Loans made under this section shall be secured by, and subject
to, security instruments approved by the department, including, but
not limited to, real property leases or liens, regulatory agreements,
and liens on manufactured structures. The department shall establish
loan terms and conditions with consideration to the financial
feasibility and prudent operation of the housing units financed. In
no event shall the loans require interest at a rate higher than
3-percent simple interest or have a term longer than the useful life
of the housing units. Repayments may be deferred for the first five
years of the loan term, if the department determines that it is
necessary for fiscal integrity or to prevent foreclosure.
   (4) In making any loan, the department shall require that the
borrower meet all of the following conditions:
   (A) The borrower shall be capable of providing occupancy in
decent, safe, and sanitary housing that meets all of the requirements
of law within six months after the award of funds.
   (B) The borrower shall demonstrate the financial feasibility of
the project.
   (C) Prior to disbursement of funds, the borrower shall identify
the property on which the housing will be repaired, rehabilitated, or
replaced, and provide information satisfactory to the department
related to the costs and sources of funding necessary to complete the
repairs, rehabilitation, or replacement. All costs shall be
reasonable, considering the necessity of expeditious rehabilitation
or replacement.
   (5) Priority for use of the funds shall be given to borrowers who
will provide housing at the earliest date.
   (6) All units assisted under this section shall remain affordable
to low- and very low income households for the life of the project.
For the 1997-98 growing season, farmworkers who previously occupied
the damaged or destroyed housing shall have first priority to occupy
any unit assisted under this section.
   (7) If units assisted under this section are built or
rehabilitated in the same natural disaster zone as the units damaged
or destroyed by the disaster, the borrower shall maintain disaster
insurance on the units for the useful life of the units. For purposes
of this section, "disaster insurance" means fire, earthquake, flood,
or other insurance against the natural disaster that damaged or
destroyed the housing units.
   (8) To the extent that any housing unit that was damaged or
destroyed is reconstructed under this section with substantially the
same number of units, it shall be deemed to be "existing housing" for
the purposes of subdivision (d) of Section 37001.5.
   (9) The department may waive any requirements of Section 50517.5
and any regulations promulgated thereunder that are inconsistent with
prompt and effective implementation of the program described in this
section. In addition, any rule, policy, or standard of general
application employed by the department in implementing the provision
of this section shall not be subject to the requirements of Chapter
3.5 (commencing with Section 11340) of Part 12 of Division 3 of Title
2 of the Government Code. Awards of funds made pursuant to this
section shall not be subjected to review or approval by the Local
Assistance Loan and Grant Committee of the department operating
pursuant to Subchapter 1 (commencing with Section 6900) of Chapter
6.5 of Title 25 of the California Code of Regulations.



50517.10.


State Codes and Statutes

Statutes > California > Hsc > 50515.2-50517.10

HEALTH AND SAFETY CODE
SECTION 50515.2-50517.10



50515.2.  (a) Notwithstanding any other law, the department may
extend the term of an existing multifamily housing loan made by the
department under the original Rental Housing Construction Program
established by Chapter 9 (commencing with Section 50735); the Special
User Housing Rehabilitation Program established by Section 50670; or
the Deferred Payment Rehabilitation Loan Program established by
Chapter 6.5 (commencing with Section 50660) upon the request of any
borrower subject to the following conditions:
   (1) The borrower shall provide to the department a complete report
showing all existing tenants, their incomes, as reported in the most
recent annual income certification, and the rents currently charged
to each tenant.
   (2) The borrower shall agree to an extension of the term of the
loan by an additional 55 years from the date of departmental
approval. If the department determines that the remaining useful life
of a project is less than 55 years, the loan may be extended for the
remaining useful life of the project, but not less than 30 years.
The department may convert the existing outstanding principal and any
accrued interest into the new loan amount. The interest rate on the
extended term shall be 3 percent simple interest. All future payments
of principal and interest may be deferred except for a percentage of
interest equal to the percentage charged in the Multifamily Housing
Program (Chapter 6.7 (commencing with Section 50675)) for the
department's ongoing monitoring and management responsibilities.
   (3) The borrower shall agree to amend or replace the existing
regulatory agreement to include terms generally equivalent to those
used in the Multifamily Housing Program. In addition, the borrower
shall agree to replace, amend, or revise any other loan documents as
necessary to accomplish the purposes of this section.
   (4) (A) The borrower shall agree to a rent schedule that ensures
that all assisted units are affordable to households earning no more
than 60 percent of the area median income and that at least 35
percent of all assisted units shall be reserved for, affordable to,
and occupied by, households earning less than or equal to the
midlevel target used by the Multifamily Housing Program, unless the
department finds both of the following:
   (i) That the project income is insufficient to maintain fiscal
integrity, as that term is used in the Multifamily Housing Program,
and is insufficient to maintain the rents required under this
subparagraph pursuant to the terms of the Uniform Multifamily
Regulations, or any successor regulations, except that commercial
vacancy loss shall be projected based on the operating history of the
project, commercial vacancy rates in the neighborhood, and similar
factors typically used by commercial lenders.
   (ii) That the borrower has exhausted all available potential
sources of rental subsidies, including, but not limited to, federal,
state, and local funds.
   (B) If the department finds that a reduction in the percentage of
assisted units to less than 35 percent of assisted units is
justified, it shall ensure that the largest possible percentage is
reserved for the targeted households.
   (C) For the purposes of this paragraph, "midlevel target used by
the Multifamily Housing Program" shall mean the following:
   (i) For counties with an area median income of 110 percent or less
of the state median income, it shall mean households earning 30
percent of state median income, expressed as a percentage of area
median income.
   (ii) For counties with an area median income that exceeds 110
percent of the state median income, it shall mean households earning
less than 35 percent of state median income, expressed as a
percentage of area median income.
   (5) No tenant residing in a project at the time of an extension
authorized by this section may be displaced as a result of the
regulatory revisions authorized by this section, and, for the initial
operating year after approval of the extension, that tenant may not
have his or her rent increased above the amounts specified in his or
her preexisting regulatory agreements, except that no tenant may pay
less than 30 percent of his or her income, calculated pursuant to the
Multifamily Housing Program criteria. If a rent increase authorized
under this section would exceed a 10 percent increase in payment for
a lower income tenant, the project owner shall phase in the increase
so that it does not exceed 10 percent per year. After the initial
operating year after the extension authorized under this section, the
rents for all regulated units that are subject to the new agreement
may be adjusted in the percentage calculated pursuant to the
Multifamily Housing Program criteria, plus the amount necessary to
bring an individual tenant up to the 30-percent-of-income standard,
provided that the total annual increase does not exceed 10 percent.
Rent adjustments for all tenants occupying assisted units at the time
of the extension shall be based on the tenant's initial rent
established under this paragraph. Upon vacancy of an assisted unit
occupied at the time of the extension, the new base rent for that
unit shall be established consistent with the standards used in the
Multifamily Housing Program for the regulated income band, subject to
the reservation of units required under paragraph (4).
   (b) The department may approve an extension of a loan made by the
department if it determines that the project has, or will have after
rehabilitation or repairs, a potential remaining useful life of at
least 30 years and that the project is deemed financially feasible
pursuant to the terms of its Uniform Multifamily Regulations or
successor regulations.
   (c) The department may subordinate its loan or loans to refinance
existing senior debt and to additional permanent financing if that
additional senior debt is used only for rehabilitation, repairs, or
improvements, or both, including related soft costs, that are modest
in size, scope, and cost, as determined by the department and
necessary to maintain and extend the useful life of the project.
   (d) (1) For the purposes of this subdivision, the "agency projects"
are the 26 projects assisted through the original Rental Housing
Construction Program with funds administered by the California
Housing Finance Agency.
   (2) Upon the request of a borrower the agency may extend the term
of an existing loan for an agency project by a period that is equal
to the remaining useful life of the project, as determined by the
agency, but not more than 55 years and not less than 30 years from
the date of agency approval, under terms that are substantially
consistent with the purposes of this section, if all of the following
conditions are met:
   (A) The borrower shall provide to the agency the report described
in paragraph (1) of subdivision (a).
   (B) The extension shall be subject to the conditions set forth in
paragraph (2) of subdivision (a).
   (C) The rent levels and tenant protections described in paragraphs
(4) and (5) of subdivision (a) shall be satisfied, except that the
agency, not the department, shall make the determination required
under clause (i) of subparagraph (A) of paragraph (4) of subdivision
(a) that the project income is insufficient to meet the agency's
affordable multifamily lending program requirements.
   (3) Any determination or approval under this section regarding the
agency projects shall be by the agency rather than the department.
   (4) The borrower and the agency shall amend, replace, or revise
any other loan documents or agreements governing the loans for the
agency projects as necessary to accomplish the purposes of this
section.
   (5) All funds received by the agency for the agency projects,
whether by loan repayment, foreclosure, accrued interest, or
otherwise, shall be used to provide assistance to existing or future
projects financed by or through the agency pursuant to terms
consistent with the agency's affordable multifamily lending programs.
   (e) It is the intent of the Legislature in enacting this section
that the department should manage its reserves for the original
Rental Housing Construction Program in a manner that will allow for
the continuation of current benefits to current low-income tenants
for the longest period of time possible. Accordingly, rent subsidies
shall be continued only for units occupied by lower income tenants
who were in residence at the time of the extension authorized under
this section.
   (f) It is the intent of the Legislature in enacting this section
to provide to the department the flexibility necessary to preserve
the affordable rental units for which the state has already made a
significant public investment. Accordingly, the department may
implement this section through guidelines that shall not be subject
to Chapter 2.5 (commencing with Section 11340) of Part 1 of Title 2
of the Government Code.
   (g) This section shall become operative on July 1, 2008.



50517.5.  (a) (1) The department shall establish the Joe Serna, Jr.
Farmworker Housing Grant Program under which, subject to the
availability of funds therefor, grants or loans, or both, shall be
made to local public entities, nonprofit corporations, limited
liability companies, and limited partnerships, for the construction
or rehabilitation of housing for agricultural employees and their
families or for the acquisition of manufactured housing as part of a
program to address and remedy the impacts of current and potential
displacement of farmworker families from existing labor camps,
mobilehome parks, or other housing. Under this program, grants or
loans, or both, may also be made for the cost of acquiring the land
and any building thereon in connection with housing assisted pursuant
to this section and for the construction and rehabilitation of
related support facilities necessary to the housing. In its
administration of this program, the department shall disburse grants
or loans, or both, to the local public entities, nonprofit
corporations, limited liability companies, or limited partnerships or
may, at the request of the local public entity, nonprofit
corporation, limited liability company, or limited partnership that
sponsors and supervises the rehabilitation or construction program,
disburse grant funds to agricultural employees who are participants
in a rehabilitation or construction program sponsored and supervised
by the local public entity, nonprofit corporation, limited liability
company, or limited partnership. No part of a grant or loan made
pursuant to this section may be used for project organization or
planning.
   (2) Notwithstanding any other provision of this chapter, upon the
request of a grantee the program also may loan funds to a grantee at
no more than 3 percent simple interest. Principal and accumulated
interest is due and payable upon completion of the term of the loan.
For any loan made pursuant to this subdivision, the performance
requirements of the lien shall remain in effect for a period of no
less than the original term of the loan.
   (3) The program shall be administered by the Director of Housing
and Community Development and officers and employees of the
department as he or she may designate.
   (b) (1) The Joe Serna, Jr. Farmworker Housing Grant Fund is hereby
created in the State Treasury. Notwithstanding Section 13340 of the
Government Code, all money in the fund is continuously appropriated
to the department for making grants or loans, or both, pursuant to
this section and Section 50517.10, for purposes of Chapter 8.5
(commencing with Section 50710), and for costs incurred by the
department in administering these programs.
   (2) There shall be paid into the fund the following:
   (A) Any moneys appropriated and made available by the Legislature
for purposes of the fund.
   (B) Any moneys that the department receives in repayment or return
of grants or loans from the fund, including any interest therefrom.
   (C) Any other moneys that may be made available to the department
for the purposes of this chapter from any other source or sources.
   (D) All moneys appropriated to the department for the purposes of
Chapter 8.5 (commencing with Section 50710) and any moneys received
by the department from the occupants of housing or shelter provided
pursuant to Chapter 8.5 (commencing with Section 50710). These moneys
shall be separately accounted for from the other moneys deposited in
the fund.
   (c) (1) Grants and loans made pursuant to this section shall be
matched by grantees with at least equal amounts of federal moneys,
other cash investments, or in-kind contributions.
   (2) For grant or loan requests of not more than five hundred
thousand dollars ($500,000), the department may waive a part of the
matching fund requirement in this subdivision if the grantee
demonstrates an inability, as may be established by the department in
"Notices of Funding Availability," to secure adequate financing from
other sources. Not more than 5 percent of the total amount
appropriated to the department for the purposes of this section may
be used to meet grant or loan requests in which a part of the
matching fund requirement has been waived pursuant to this paragraph.
   (d) With respect to the supervision of grantees, the department
shall do the following:
   (1) Establish minimum capital reserves to be maintained by
grantees.
   (2) Fix and alter from time to time a schedule of rents that may
be necessary to provide residents of housing assisted pursuant to
this section with affordable rents to the extent consistent with the
maintenance of the financial integrity of the housing project. No
grantee shall increase the rent on any unit constructed or
rehabilitated with the assistance of funds provided pursuant to this
section without the prior permission of the department, which shall
be given only if the grantee affirmatively demonstrates that the
increase is required to defray necessary operating costs or avoid
jeopardizing the fiscal integrity of the housing project.
   (3) Determine standards for, and control selection by grantees of,
tenants and subsequent purchasers of housing constructed or
rehabilitated with the assistance of funds provided pursuant to this
section.
   (4) (A) Require as a condition precedent to a grant or loan, or
both, of funds that the applicant have site control that is
satisfactory to the department; that the grantee be record owner in
fee of the assisted real property or provide other security including
a lien on the manufactured home that is satisfactory to the
department to ensure compliance with the construction, financial, and
program obligations; and that the grantee shall have entered into a
written agreement with the department binding upon the grantee and
successors in interest to the grantee. The agreement shall include
the conditions under which the funds advanced may be repaid. The
agreement shall include provisions for a lien on the assisted real
property or manufactured home in favor of the State of California for
the purpose of securing performance of the agreement. The agreement
shall also provide that the lien shall endure until released by the
Director of Housing and Community Development.
   (B) If funds granted or loaned pursuant to this section constitute
less than 25 percent of the total development cost or value,
whichever is applicable, of a project assisted under this section,
the department may adopt, by regulation, criteria for determining the
number of units in a project to which the restrictions on occupancy
contained in the agreement apply. In no event may these regulations
provide for the application of the agreement to a percentage of units
in a project that is less than the percentage of total development
costs that funds granted or loaned pursuant to this section
represent.
   (C) Contemporaneously with the disbursement of the initial funds
to a grantee, the department shall cause to be recorded, in the
office of the county recorder of the county in which the assisted
real property is located, a notice of lien executed by the Director
of Housing and Community Development. The notice of lien shall refer
to the agreement required by this paragraph for which it secures and
it shall include a legal description of the assisted real property
that is subject to the lien. The notice of lien shall be indexed by
the recorder in the Grantor Index to the name of the grantee and in
the Grantee Index to the name of the State of California, Department
of Housing and Community Development. For manufactured housing, the
liens shall be recorded by the department in the same manner as other
manufactured housing liens are recorded. The department shall adopt
by regulation criteria for the determination of the lien period. This
regulation shall take into account whether the property is held by
multifamily rental, single-family ownership, or cooperative ownership
and whether it is new construction or rehabilitative construction.
The lien period for manufactured housing liens for manufactured homes
shall not exceed 10 years.
   (D) Pursuant to regulations adopted by the department, the
department may execute and cause to be recorded in the office of the
recorder of the county in which a notice of lien has been recorded,
or the department, as appropriate, a subordination of the lien. The
regulations adopted by the department shall provide that any
subordination of the lien shall not jeopardize the security interest
of the state and shall further the interest of farmworker housing.
The recitals contained in the subordination shall be conclusive in
favor of any bona fide purchaser or lender relying thereon.
   (E) Prior to funds granted pursuant to this section being used to
finance the acquisition of a manufactured home, the grantee shall
ensure that the home either is already installed in a location where
it will be occupied by the eligible household or that a location has
been leased or otherwise made available for the manufactured home to
be occupied by the eligible household.
   (5) Regulate the terms of occupancy agreements or resale controls,
to be used in housing assisted pursuant to this section.
   (6) Provide linguistically appropriate services and publications,
or require grantees to do so, as necessary to implement the purposes
of this section.
   (7) The agreement between the department and the grantee shall
provide, among other things, that both of the following occur:
   (A) Upon the sale or conveyance of the real property, or any part
thereof, for use other than for agricultural employee occupancy, the
grantee or its successors shall, as a condition for the release of
the lien provided pursuant to paragraph (4), repay to the fund the
department's grant and loan funds.
   (B) Upon the sale or conveyance of the real property or any part
thereof for continued agricultural employee occupancy, the transferee
shall assume the obligation of the transferor and the real property
shall be transferred to the new owner; provided that the transferee
agrees to abide by the agreement entered into between the transferor
and the department and that the new owner takes the property subject
to the lien provided pursuant to paragraph (4), except that this lien
shall, at the time of the transfer of the property to the new owner,
be extended for an additional lien period determined by the
department pursuant to paragraph (4), and the new owner shall not be
credited with the lien period that had run from the time the
transferor had acquired the property to the time of transfer to the
new owner, unless the department determines that it is in the best
interest of the state and consistent with the intent of this section
to so credit the lien period to the new owner. However, the lien
shall have priority as of the recording date of the lien for the
original grantee, pursuant to paragraph (4).
   (e) The department may do any of the following with respect to
grantees:
   (1) Through its agents or employees enter upon and inspect the
lands, buildings, and equipment of a grantee, including books and
records, at any time before, during, or after construction or
rehabilitation of units assisted pursuant to this section. However,
there shall be no entry or inspection of any unit that is occupied,
whether or not any occupant is actually present, without the consent
of the occupant.
   (2) Supervise the operation and maintenance of any housing
assisted pursuant to this section and order repairs as may be
necessary to protect the public interest or the health, safety, or
welfare of occupants of the housing.
   (f) The department shall include in its annual report required by
Section 50408, a current report of the Joe Serna, Jr. Farmworker
Housing Grant Program. The report shall include, but need not be
limited to, (1) the number of households assisted, (2) the average
income of households assisted and the distribution of annual incomes
among assisted households, (3) the rents paid by households assisted,
(4) the number and amount of grants or loans, or both, made to each
grantee in the preceding year, (5) the dollar value of funding
derived from sources other than the state for each project receiving
a grant or loan, or both, under this section, and an identification
of each source, (6) recommendations, as needed, to improve operations
of the program and respecting the desirability of extending its
application to other groups in rural areas identified by the
department as having special need for state housing assistance, and
(7) the number of manufactured housing units assisted under this
section.
   (g) As used in this section:
   (1) "Agricultural employee" has the same meaning as specified in
subdivision (b) of Section 1140.4 of the Labor Code, but also
includes any person who works on or off the farm in the processing of
any agricultural commodity until it is shipped for distribution,
whether or not this person is encompassed within the definition
specified in subdivision (b) of Section 1140.4 of the Labor Code.
   (2) "Grantee" means the local public entity, nonprofit
corporation, limited liability company, or limited partnership that
is awarded the grant or loan, or both, under this section, and, at
the request thereof, may include an agricultural employee receiving
direct payment of a grant for rehabilitation under this section who
occupies the assisted housing both before and after the
rehabilitation and may include an agricultural employee receiving
direct payment of a grant for construction under this section who
will occupy the assisted housing and who is a participant in a
rehabilitation or construction program sponsored and supervised by a
local public entity, nonprofit corporation, limited liability
company, or limited partnership.
   (3) "Housing" may include, but is not necessarily limited to,
conventionally constructed units and manufactured housing installed
pursuant to either Section 18551 or 18613.
   (4) "Limited liability company" means a limited liability company
where all the members are nonprofit public benefit corporations.
   (5) "Limited partnership" means a limited partnership where all of
the general partners are either nonprofit public benefit
corporations, limited liability companies, or a combination of
nonprofit public benefit corporations and limited liability
companies.
   (h) The department may provide the assistance offered pursuant to
this chapter in any area where there is a substantial unmet need for
farmworker housing.



50517.6.  (a) The department may set aside the amount of funds
authorized by subdivision (d) for the purposes of curing or averting
a default on the terms of any loan or other obligation by the
recipient of financial assistance, or bidding at any foreclosure sale
where the default or foreclosure sale would jeopardize the
department's security in the dwelling unit assisted pursuant to this
chapter.
   (b) The department may use the set-aside funds made available
pursuant to this chapter to repair or maintain any dwelling unit
assisted pursuant to this chapter that was acquired to protect the
department's security interest in the dwelling unit.
   (c) The payment or advance of funds by the department pursuant to
this section shall be exclusively within the department's discretion,
and no person shall be deemed to have any entitlement to the payment
or advance of those funds. The amount of any funds expended by the
department for the purposes of curing or averting a default shall be
added to any grant amount secured by the lien and shall be payable to
the department upon demand.
   (d) On the effective date of the act that adds this section, the
department may set aside up to two hundred thousand dollars
($200,000) from the Joe Serna, Jr. Farmworker Housing Grant Fund for
the purposes authorized by this section. On July 1 of each subsequent
fiscal year, the department may set aside, for the purposes of this
section, up to 4 percent of the funds available in the Joe Serna, Jr.
Farmworker Housing Grant Fund on that date.



50517.7.  In counties in which a disaster has been declared by the
Governor pursuant to Chapter 7 (commencing with Section 8550) of
Division 1 of Title 2 of the Government Code and for a period of 12
months after the declaration, the department may provide grants from
the fund established by subdivision (b) of Section 50517.5, subject
to the following terms and conditions, which are applicable only to
this section:
   (a) Grants may be made to local public entities, nonprofit
corporations, and housing owners comprised of either homeowners who
are agricultural employees or owners of rental property used
primarily by agricultural households.
   (b) The department may enter into master agreements with nonprofit
corporations or local public entities or it may enter into contracts
directly with housing owners to carry out the activities authorized
by this section.
   (c) The department may make grants directly to housing owners or
through master agreements for the cost of preparation of applications
for funds, and supervision of expenditures from the fund, including,
but not limited to estimates, work writeups, bidding supervision,
and inspections. Funds granted pursuant to this subdivision shall not
be secured by, and subject to, the liens required by Section
50517.5.
   (d) The department, either directly or through master agreements,
may provide grants to housing owners which shall be used for housing
rehabilitation or acquisition and rehabilitation, and related costs,
other than those costs accruing pursuant to subdivision (c). Only
those funds from the fund which are actually utilized pursuant to
this subdivision shall be secured by, and subject to, the liens
required by Section 50517.5.
   (e) The department may waive the matching requirements of
subdivision (c) of Section 50517.5.



50517.8.  A household deemed eligible by the United States
Department of Agriculture, under the Rural Housing Loan Program of
Section 502 of Title V of the Housing Act of 1949 (42 U.S.C. Sec.
1472 et seq.), on the basis of the household's ratio of housing costs
to household income shall be deemed eligible for a grant pursuant to
this chapter notwithstanding the department's calculation of the
ratio of housing costs to income utilizing different and additional
housing cost factors.



50517.9.  (a) In enacting this section, it is the intent of the
Legislature to provide disaster assistance for farmworkers displaced
by the 1997 floods in the most expeditious and fiscally sound manner
possible. It is the intent of the Legislature that the Department of
Housing and Community Development administer this section in
accordance with those goals.
   (b) In counties in which a disaster has been declared by the
Governor pursuant to Section 8625 of the Government Code, and for a
period of 12 months after the declaration, the department may award
funds for the purposes of this section, subject to the following
terms and conditions:
   (1) Loans may be made to local public entities, nonprofit
corporations, and private property owners to repair, rehabilitate, or
replace housing previously used exclusively by migrant farmworker
households or unaccompanied migrant farmworker adults, which will be
used in the future for those purposes. Loan funds may be used to
acquire or lease "manufactured structures," which, for the purposes
of this section, means structures subject to Part 2 (commencing with
Section 18000) of Division 13. Private property owners shall be
eligible for loans only to the extent that other federal and state
resources, private insurance proceeds, or private institutional
lending sources are not available in a timely manner or do not
provide the coverage needed to rehabilitate or reconstruct the
housing without increasing the rent above that charged for the units
prior to the disaster.
   (2) The department may enter into contracts directly with
nonprofit corporations, local public entities, or private property
owners to carry out the activities authorized by this section.
   (3) Loans made under this section shall be secured by, and subject
to, security instruments approved by the department, including, but
not limited to, real property leases or liens, regulatory agreements,
and liens on manufactured structures. The department shall establish
loan terms and conditions with consideration to the financial
feasibility and prudent operation of the housing units financed. In
no event shall the loans require interest at a rate higher than
3-percent simple interest or have a term longer than the useful life
of the housing units. Repayments may be deferred for the first five
years of the loan term, if the department determines that it is
necessary for fiscal integrity or to prevent foreclosure.
   (4) In making any loan, the department shall require that the
borrower meet all of the following conditions:
   (A) The borrower shall be capable of providing occupancy in
decent, safe, and sanitary housing that meets all of the requirements
of law within six months after the award of funds.
   (B) The borrower shall demonstrate the financial feasibility of
the project.
   (C) Prior to disbursement of funds, the borrower shall identify
the property on which the housing will be repaired, rehabilitated, or
replaced, and provide information satisfactory to the department
related to the costs and sources of funding necessary to complete the
repairs, rehabilitation, or replacement. All costs shall be
reasonable, considering the necessity of expeditious rehabilitation
or replacement.
   (5) Priority for use of the funds shall be given to borrowers who
will provide housing at the earliest date.
   (6) All units assisted under this section shall remain affordable
to low- and very low income households for the life of the project.
For the 1997-98 growing season, farmworkers who previously occupied
the damaged or destroyed housing shall have first priority to occupy
any unit assisted under this section.
   (7) If units assisted under this section are built or
rehabilitated in the same natural disaster zone as the units damaged
or destroyed by the disaster, the borrower shall maintain disaster
insurance on the units for the useful life of the units. For purposes
of this section, "disaster insurance" means fire, earthquake, flood,
or other insurance against the natural disaster that damaged or
destroyed the housing units.
   (8) To the extent that any housing unit that was damaged or
destroyed is reconstructed under this section with substantially the
same number of units, it shall be deemed to be "existing housing" for
the purposes of subdivision (d) of Section 37001.5.
   (9) The department may waive any requirements of Section 50517.5
and any regulations promulgated thereunder that are inconsistent with
prompt and effective implementation of the program described in this
section. In addition, any rule, policy, or standard of general
application employed by the department in implementing the provision
of this section shall not be subject to the requirements of Chapter
3.5 (commencing with Section 11340) of Part 12 of Division 3 of Title
2 of the Government Code. Awards of funds made pursuant to this
section shall not be subjected to review or approval by the Local
Assistance Loan and Grant Committee of the department operating
pursuant to Subchapter 1 (commencing with Section 6900) of Chapter
6.5 of Title 25 of the California Code of Regulations.



50517.10.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Hsc > 50515.2-50517.10

HEALTH AND SAFETY CODE
SECTION 50515.2-50517.10



50515.2.  (a) Notwithstanding any other law, the department may
extend the term of an existing multifamily housing loan made by the
department under the original Rental Housing Construction Program
established by Chapter 9 (commencing with Section 50735); the Special
User Housing Rehabilitation Program established by Section 50670; or
the Deferred Payment Rehabilitation Loan Program established by
Chapter 6.5 (commencing with Section 50660) upon the request of any
borrower subject to the following conditions:
   (1) The borrower shall provide to the department a complete report
showing all existing tenants, their incomes, as reported in the most
recent annual income certification, and the rents currently charged
to each tenant.
   (2) The borrower shall agree to an extension of the term of the
loan by an additional 55 years from the date of departmental
approval. If the department determines that the remaining useful life
of a project is less than 55 years, the loan may be extended for the
remaining useful life of the project, but not less than 30 years.
The department may convert the existing outstanding principal and any
accrued interest into the new loan amount. The interest rate on the
extended term shall be 3 percent simple interest. All future payments
of principal and interest may be deferred except for a percentage of
interest equal to the percentage charged in the Multifamily Housing
Program (Chapter 6.7 (commencing with Section 50675)) for the
department's ongoing monitoring and management responsibilities.
   (3) The borrower shall agree to amend or replace the existing
regulatory agreement to include terms generally equivalent to those
used in the Multifamily Housing Program. In addition, the borrower
shall agree to replace, amend, or revise any other loan documents as
necessary to accomplish the purposes of this section.
   (4) (A) The borrower shall agree to a rent schedule that ensures
that all assisted units are affordable to households earning no more
than 60 percent of the area median income and that at least 35
percent of all assisted units shall be reserved for, affordable to,
and occupied by, households earning less than or equal to the
midlevel target used by the Multifamily Housing Program, unless the
department finds both of the following:
   (i) That the project income is insufficient to maintain fiscal
integrity, as that term is used in the Multifamily Housing Program,
and is insufficient to maintain the rents required under this
subparagraph pursuant to the terms of the Uniform Multifamily
Regulations, or any successor regulations, except that commercial
vacancy loss shall be projected based on the operating history of the
project, commercial vacancy rates in the neighborhood, and similar
factors typically used by commercial lenders.
   (ii) That the borrower has exhausted all available potential
sources of rental subsidies, including, but not limited to, federal,
state, and local funds.
   (B) If the department finds that a reduction in the percentage of
assisted units to less than 35 percent of assisted units is
justified, it shall ensure that the largest possible percentage is
reserved for the targeted households.
   (C) For the purposes of this paragraph, "midlevel target used by
the Multifamily Housing Program" shall mean the following:
   (i) For counties with an area median income of 110 percent or less
of the state median income, it shall mean households earning 30
percent of state median income, expressed as a percentage of area
median income.
   (ii) For counties with an area median income that exceeds 110
percent of the state median income, it shall mean households earning
less than 35 percent of state median income, expressed as a
percentage of area median income.
   (5) No tenant residing in a project at the time of an extension
authorized by this section may be displaced as a result of the
regulatory revisions authorized by this section, and, for the initial
operating year after approval of the extension, that tenant may not
have his or her rent increased above the amounts specified in his or
her preexisting regulatory agreements, except that no tenant may pay
less than 30 percent of his or her income, calculated pursuant to the
Multifamily Housing Program criteria. If a rent increase authorized
under this section would exceed a 10 percent increase in payment for
a lower income tenant, the project owner shall phase in the increase
so that it does not exceed 10 percent per year. After the initial
operating year after the extension authorized under this section, the
rents for all regulated units that are subject to the new agreement
may be adjusted in the percentage calculated pursuant to the
Multifamily Housing Program criteria, plus the amount necessary to
bring an individual tenant up to the 30-percent-of-income standard,
provided that the total annual increase does not exceed 10 percent.
Rent adjustments for all tenants occupying assisted units at the time
of the extension shall be based on the tenant's initial rent
established under this paragraph. Upon vacancy of an assisted unit
occupied at the time of the extension, the new base rent for that
unit shall be established consistent with the standards used in the
Multifamily Housing Program for the regulated income band, subject to
the reservation of units required under paragraph (4).
   (b) The department may approve an extension of a loan made by the
department if it determines that the project has, or will have after
rehabilitation or repairs, a potential remaining useful life of at
least 30 years and that the project is deemed financially feasible
pursuant to the terms of its Uniform Multifamily Regulations or
successor regulations.
   (c) The department may subordinate its loan or loans to refinance
existing senior debt and to additional permanent financing if that
additional senior debt is used only for rehabilitation, repairs, or
improvements, or both, including related soft costs, that are modest
in size, scope, and cost, as determined by the department and
necessary to maintain and extend the useful life of the project.
   (d) (1) For the purposes of this subdivision, the "agency projects"
are the 26 projects assisted through the original Rental Housing
Construction Program with funds administered by the California
Housing Finance Agency.
   (2) Upon the request of a borrower the agency may extend the term
of an existing loan for an agency project by a period that is equal
to the remaining useful life of the project, as determined by the
agency, but not more than 55 years and not less than 30 years from
the date of agency approval, under terms that are substantially
consistent with the purposes of this section, if all of the following
conditions are met:
   (A) The borrower shall provide to the agency the report described
in paragraph (1) of subdivision (a).
   (B) The extension shall be subject to the conditions set forth in
paragraph (2) of subdivision (a).
   (C) The rent levels and tenant protections described in paragraphs
(4) and (5) of subdivision (a) shall be satisfied, except that the
agency, not the department, shall make the determination required
under clause (i) of subparagraph (A) of paragraph (4) of subdivision
(a) that the project income is insufficient to meet the agency's
affordable multifamily lending program requirements.
   (3) Any determination or approval under this section regarding the
agency projects shall be by the agency rather than the department.
   (4) The borrower and the agency shall amend, replace, or revise
any other loan documents or agreements governing the loans for the
agency projects as necessary to accomplish the purposes of this
section.
   (5) All funds received by the agency for the agency projects,
whether by loan repayment, foreclosure, accrued interest, or
otherwise, shall be used to provide assistance to existing or future
projects financed by or through the agency pursuant to terms
consistent with the agency's affordable multifamily lending programs.
   (e) It is the intent of the Legislature in enacting this section
that the department should manage its reserves for the original
Rental Housing Construction Program in a manner that will allow for
the continuation of current benefits to current low-income tenants
for the longest period of time possible. Accordingly, rent subsidies
shall be continued only for units occupied by lower income tenants
who were in residence at the time of the extension authorized under
this section.
   (f) It is the intent of the Legislature in enacting this section
to provide to the department the flexibility necessary to preserve
the affordable rental units for which the state has already made a
significant public investment. Accordingly, the department may
implement this section through guidelines that shall not be subject
to Chapter 2.5 (commencing with Section 11340) of Part 1 of Title 2
of the Government Code.
   (g) This section shall become operative on July 1, 2008.



50517.5.  (a) (1) The department shall establish the Joe Serna, Jr.
Farmworker Housing Grant Program under which, subject to the
availability of funds therefor, grants or loans, or both, shall be
made to local public entities, nonprofit corporations, limited
liability companies, and limited partnerships, for the construction
or rehabilitation of housing for agricultural employees and their
families or for the acquisition of manufactured housing as part of a
program to address and remedy the impacts of current and potential
displacement of farmworker families from existing labor camps,
mobilehome parks, or other housing. Under this program, grants or
loans, or both, may also be made for the cost of acquiring the land
and any building thereon in connection with housing assisted pursuant
to this section and for the construction and rehabilitation of
related support facilities necessary to the housing. In its
administration of this program, the department shall disburse grants
or loans, or both, to the local public entities, nonprofit
corporations, limited liability companies, or limited partnerships or
may, at the request of the local public entity, nonprofit
corporation, limited liability company, or limited partnership that
sponsors and supervises the rehabilitation or construction program,
disburse grant funds to agricultural employees who are participants
in a rehabilitation or construction program sponsored and supervised
by the local public entity, nonprofit corporation, limited liability
company, or limited partnership. No part of a grant or loan made
pursuant to this section may be used for project organization or
planning.
   (2) Notwithstanding any other provision of this chapter, upon the
request of a grantee the program also may loan funds to a grantee at
no more than 3 percent simple interest. Principal and accumulated
interest is due and payable upon completion of the term of the loan.
For any loan made pursuant to this subdivision, the performance
requirements of the lien shall remain in effect for a period of no
less than the original term of the loan.
   (3) The program shall be administered by the Director of Housing
and Community Development and officers and employees of the
department as he or she may designate.
   (b) (1) The Joe Serna, Jr. Farmworker Housing Grant Fund is hereby
created in the State Treasury. Notwithstanding Section 13340 of the
Government Code, all money in the fund is continuously appropriated
to the department for making grants or loans, or both, pursuant to
this section and Section 50517.10, for purposes of Chapter 8.5
(commencing with Section 50710), and for costs incurred by the
department in administering these programs.
   (2) There shall be paid into the fund the following:
   (A) Any moneys appropriated and made available by the Legislature
for purposes of the fund.
   (B) Any moneys that the department receives in repayment or return
of grants or loans from the fund, including any interest therefrom.
   (C) Any other moneys that may be made available to the department
for the purposes of this chapter from any other source or sources.
   (D) All moneys appropriated to the department for the purposes of
Chapter 8.5 (commencing with Section 50710) and any moneys received
by the department from the occupants of housing or shelter provided
pursuant to Chapter 8.5 (commencing with Section 50710). These moneys
shall be separately accounted for from the other moneys deposited in
the fund.
   (c) (1) Grants and loans made pursuant to this section shall be
matched by grantees with at least equal amounts of federal moneys,
other cash investments, or in-kind contributions.
   (2) For grant or loan requests of not more than five hundred
thousand dollars ($500,000), the department may waive a part of the
matching fund requirement in this subdivision if the grantee
demonstrates an inability, as may be established by the department in
"Notices of Funding Availability," to secure adequate financing from
other sources. Not more than 5 percent of the total amount
appropriated to the department for the purposes of this section may
be used to meet grant or loan requests in which a part of the
matching fund requirement has been waived pursuant to this paragraph.
   (d) With respect to the supervision of grantees, the department
shall do the following:
   (1) Establish minimum capital reserves to be maintained by
grantees.
   (2) Fix and alter from time to time a schedule of rents that may
be necessary to provide residents of housing assisted pursuant to
this section with affordable rents to the extent consistent with the
maintenance of the financial integrity of the housing project. No
grantee shall increase the rent on any unit constructed or
rehabilitated with the assistance of funds provided pursuant to this
section without the prior permission of the department, which shall
be given only if the grantee affirmatively demonstrates that the
increase is required to defray necessary operating costs or avoid
jeopardizing the fiscal integrity of the housing project.
   (3) Determine standards for, and control selection by grantees of,
tenants and subsequent purchasers of housing constructed or
rehabilitated with the assistance of funds provided pursuant to this
section.
   (4) (A) Require as a condition precedent to a grant or loan, or
both, of funds that the applicant have site control that is
satisfactory to the department; that the grantee be record owner in
fee of the assisted real property or provide other security including
a lien on the manufactured home that is satisfactory to the
department to ensure compliance with the construction, financial, and
program obligations; and that the grantee shall have entered into a
written agreement with the department binding upon the grantee and
successors in interest to the grantee. The agreement shall include
the conditions under which the funds advanced may be repaid. The
agreement shall include provisions for a lien on the assisted real
property or manufactured home in favor of the State of California for
the purpose of securing performance of the agreement. The agreement
shall also provide that the lien shall endure until released by the
Director of Housing and Community Development.
   (B) If funds granted or loaned pursuant to this section constitute
less than 25 percent of the total development cost or value,
whichever is applicable, of a project assisted under this section,
the department may adopt, by regulation, criteria for determining the
number of units in a project to which the restrictions on occupancy
contained in the agreement apply. In no event may these regulations
provide for the application of the agreement to a percentage of units
in a project that is less than the percentage of total development
costs that funds granted or loaned pursuant to this section
represent.
   (C) Contemporaneously with the disbursement of the initial funds
to a grantee, the department shall cause to be recorded, in the
office of the county recorder of the county in which the assisted
real property is located, a notice of lien executed by the Director
of Housing and Community Development. The notice of lien shall refer
to the agreement required by this paragraph for which it secures and
it shall include a legal description of the assisted real property
that is subject to the lien. The notice of lien shall be indexed by
the recorder in the Grantor Index to the name of the grantee and in
the Grantee Index to the name of the State of California, Department
of Housing and Community Development. For manufactured housing, the
liens shall be recorded by the department in the same manner as other
manufactured housing liens are recorded. The department shall adopt
by regulation criteria for the determination of the lien period. This
regulation shall take into account whether the property is held by
multifamily rental, single-family ownership, or cooperative ownership
and whether it is new construction or rehabilitative construction.
The lien period for manufactured housing liens for manufactured homes
shall not exceed 10 years.
   (D) Pursuant to regulations adopted by the department, the
department may execute and cause to be recorded in the office of the
recorder of the county in which a notice of lien has been recorded,
or the department, as appropriate, a subordination of the lien. The
regulations adopted by the department shall provide that any
subordination of the lien shall not jeopardize the security interest
of the state and shall further the interest of farmworker housing.
The recitals contained in the subordination shall be conclusive in
favor of any bona fide purchaser or lender relying thereon.
   (E) Prior to funds granted pursuant to this section being used to
finance the acquisition of a manufactured home, the grantee shall
ensure that the home either is already installed in a location where
it will be occupied by the eligible household or that a location has
been leased or otherwise made available for the manufactured home to
be occupied by the eligible household.
   (5) Regulate the terms of occupancy agreements or resale controls,
to be used in housing assisted pursuant to this section.
   (6) Provide linguistically appropriate services and publications,
or require grantees to do so, as necessary to implement the purposes
of this section.
   (7) The agreement between the department and the grantee shall
provide, among other things, that both of the following occur:
   (A) Upon the sale or conveyance of the real property, or any part
thereof, for use other than for agricultural employee occupancy, the
grantee or its successors shall, as a condition for the release of
the lien provided pursuant to paragraph (4), repay to the fund the
department's grant and loan funds.
   (B) Upon the sale or conveyance of the real property or any part
thereof for continued agricultural employee occupancy, the transferee
shall assume the obligation of the transferor and the real property
shall be transferred to the new owner; provided that the transferee
agrees to abide by the agreement entered into between the transferor
and the department and that the new owner takes the property subject
to the lien provided pursuant to paragraph (4), except that this lien
shall, at the time of the transfer of the property to the new owner,
be extended for an additional lien period determined by the
department pursuant to paragraph (4), and the new owner shall not be
credited with the lien period that had run from the time the
transferor had acquired the property to the time of transfer to the
new owner, unless the department determines that it is in the best
interest of the state and consistent with the intent of this section
to so credit the lien period to the new owner. However, the lien
shall have priority as of the recording date of the lien for the
original grantee, pursuant to paragraph (4).
   (e) The department may do any of the following with respect to
grantees:
   (1) Through its agents or employees enter upon and inspect the
lands, buildings, and equipment of a grantee, including books and
records, at any time before, during, or after construction or
rehabilitation of units assisted pursuant to this section. However,
there shall be no entry or inspection of any unit that is occupied,
whether or not any occupant is actually present, without the consent
of the occupant.
   (2) Supervise the operation and maintenance of any housing
assisted pursuant to this section and order repairs as may be
necessary to protect the public interest or the health, safety, or
welfare of occupants of the housing.
   (f) The department shall include in its annual report required by
Section 50408, a current report of the Joe Serna, Jr. Farmworker
Housing Grant Program. The report shall include, but need not be
limited to, (1) the number of households assisted, (2) the average
income of households assisted and the distribution of annual incomes
among assisted households, (3) the rents paid by households assisted,
(4) the number and amount of grants or loans, or both, made to each
grantee in the preceding year, (5) the dollar value of funding
derived from sources other than the state for each project receiving
a grant or loan, or both, under this section, and an identification
of each source, (6) recommendations, as needed, to improve operations
of the program and respecting the desirability of extending its
application to other groups in rural areas identified by the
department as having special need for state housing assistance, and
(7) the number of manufactured housing units assisted under this
section.
   (g) As used in this section:
   (1) "Agricultural employee" has the same meaning as specified in
subdivision (b) of Section 1140.4 of the Labor Code, but also
includes any person who works on or off the farm in the processing of
any agricultural commodity until it is shipped for distribution,
whether or not this person is encompassed within the definition
specified in subdivision (b) of Section 1140.4 of the Labor Code.
   (2) "Grantee" means the local public entity, nonprofit
corporation, limited liability company, or limited partnership that
is awarded the grant or loan, or both, under this section, and, at
the request thereof, may include an agricultural employee receiving
direct payment of a grant for rehabilitation under this section who
occupies the assisted housing both before and after the
rehabilitation and may include an agricultural employee receiving
direct payment of a grant for construction under this section who
will occupy the assisted housing and who is a participant in a
rehabilitation or construction program sponsored and supervised by a
local public entity, nonprofit corporation, limited liability
company, or limited partnership.
   (3) "Housing" may include, but is not necessarily limited to,
conventionally constructed units and manufactured housing installed
pursuant to either Section 18551 or 18613.
   (4) "Limited liability company" means a limited liability company
where all the members are nonprofit public benefit corporations.
   (5) "Limited partnership" means a limited partnership where all of
the general partners are either nonprofit public benefit
corporations, limited liability companies, or a combination of
nonprofit public benefit corporations and limited liability
companies.
   (h) The department may provide the assistance offered pursuant to
this chapter in any area where there is a substantial unmet need for
farmworker housing.



50517.6.  (a) The department may set aside the amount of funds
authorized by subdivision (d) for the purposes of curing or averting
a default on the terms of any loan or other obligation by the
recipient of financial assistance, or bidding at any foreclosure sale
where the default or foreclosure sale would jeopardize the
department's security in the dwelling unit assisted pursuant to this
chapter.
   (b) The department may use the set-aside funds made available
pursuant to this chapter to repair or maintain any dwelling unit
assisted pursuant to this chapter that was acquired to protect the
department's security interest in the dwelling unit.
   (c) The payment or advance of funds by the department pursuant to
this section shall be exclusively within the department's discretion,
and no person shall be deemed to have any entitlement to the payment
or advance of those funds. The amount of any funds expended by the
department for the purposes of curing or averting a default shall be
added to any grant amount secured by the lien and shall be payable to
the department upon demand.
   (d) On the effective date of the act that adds this section, the
department may set aside up to two hundred thousand dollars
($200,000) from the Joe Serna, Jr. Farmworker Housing Grant Fund for
the purposes authorized by this section. On July 1 of each subsequent
fiscal year, the department may set aside, for the purposes of this
section, up to 4 percent of the funds available in the Joe Serna, Jr.
Farmworker Housing Grant Fund on that date.



50517.7.  In counties in which a disaster has been declared by the
Governor pursuant to Chapter 7 (commencing with Section 8550) of
Division 1 of Title 2 of the Government Code and for a period of 12
months after the declaration, the department may provide grants from
the fund established by subdivision (b) of Section 50517.5, subject
to the following terms and conditions, which are applicable only to
this section:
   (a) Grants may be made to local public entities, nonprofit
corporations, and housing owners comprised of either homeowners who
are agricultural employees or owners of rental property used
primarily by agricultural households.
   (b) The department may enter into master agreements with nonprofit
corporations or local public entities or it may enter into contracts
directly with housing owners to carry out the activities authorized
by this section.
   (c) The department may make grants directly to housing owners or
through master agreements for the cost of preparation of applications
for funds, and supervision of expenditures from the fund, including,
but not limited to estimates, work writeups, bidding supervision,
and inspections. Funds granted pursuant to this subdivision shall not
be secured by, and subject to, the liens required by Section
50517.5.
   (d) The department, either directly or through master agreements,
may provide grants to housing owners which shall be used for housing
rehabilitation or acquisition and rehabilitation, and related costs,
other than those costs accruing pursuant to subdivision (c). Only
those funds from the fund which are actually utilized pursuant to
this subdivision shall be secured by, and subject to, the liens
required by Section 50517.5.
   (e) The department may waive the matching requirements of
subdivision (c) of Section 50517.5.



50517.8.  A household deemed eligible by the United States
Department of Agriculture, under the Rural Housing Loan Program of
Section 502 of Title V of the Housing Act of 1949 (42 U.S.C. Sec.
1472 et seq.), on the basis of the household's ratio of housing costs
to household income shall be deemed eligible for a grant pursuant to
this chapter notwithstanding the department's calculation of the
ratio of housing costs to income utilizing different and additional
housing cost factors.



50517.9.  (a) In enacting this section, it is the intent of the
Legislature to provide disaster assistance for farmworkers displaced
by the 1997 floods in the most expeditious and fiscally sound manner
possible. It is the intent of the Legislature that the Department of
Housing and Community Development administer this section in
accordance with those goals.
   (b) In counties in which a disaster has been declared by the
Governor pursuant to Section 8625 of the Government Code, and for a
period of 12 months after the declaration, the department may award
funds for the purposes of this section, subject to the following
terms and conditions:
   (1) Loans may be made to local public entities, nonprofit
corporations, and private property owners to repair, rehabilitate, or
replace housing previously used exclusively by migrant farmworker
households or unaccompanied migrant farmworker adults, which will be
used in the future for those purposes. Loan funds may be used to
acquire or lease "manufactured structures," which, for the purposes
of this section, means structures subject to Part 2 (commencing with
Section 18000) of Division 13. Private property owners shall be
eligible for loans only to the extent that other federal and state
resources, private insurance proceeds, or private institutional
lending sources are not available in a timely manner or do not
provide the coverage needed to rehabilitate or reconstruct the
housing without increasing the rent above that charged for the units
prior to the disaster.
   (2) The department may enter into contracts directly with
nonprofit corporations, local public entities, or private property
owners to carry out the activities authorized by this section.
   (3) Loans made under this section shall be secured by, and subject
to, security instruments approved by the department, including, but
not limited to, real property leases or liens, regulatory agreements,
and liens on manufactured structures. The department shall establish
loan terms and conditions with consideration to the financial
feasibility and prudent operation of the housing units financed. In
no event shall the loans require interest at a rate higher than
3-percent simple interest or have a term longer than the useful life
of the housing units. Repayments may be deferred for the first five
years of the loan term, if the department determines that it is
necessary for fiscal integrity or to prevent foreclosure.
   (4) In making any loan, the department shall require that the
borrower meet all of the following conditions:
   (A) The borrower shall be capable of providing occupancy in
decent, safe, and sanitary housing that meets all of the requirements
of law within six months after the award of funds.
   (B) The borrower shall demonstrate the financial feasibility of
the project.
   (C) Prior to disbursement of funds, the borrower shall identify
the property on which the housing will be repaired, rehabilitated, or
replaced, and provide information satisfactory to the department
related to the costs and sources of funding necessary to complete the
repairs, rehabilitation, or replacement. All costs shall be
reasonable, considering the necessity of expeditious rehabilitation
or replacement.
   (5) Priority for use of the funds shall be given to borrowers who
will provide housing at the earliest date.
   (6) All units assisted under this section shall remain affordable
to low- and very low income households for the life of the project.
For the 1997-98 growing season, farmworkers who previously occupied
the damaged or destroyed housing shall have first priority to occupy
any unit assisted under this section.
   (7) If units assisted under this section are built or
rehabilitated in the same natural disaster zone as the units damaged
or destroyed by the disaster, the borrower shall maintain disaster
insurance on the units for the useful life of the units. For purposes
of this section, "disaster insurance" means fire, earthquake, flood,
or other insurance against the natural disaster that damaged or
destroyed the housing units.
   (8) To the extent that any housing unit that was damaged or
destroyed is reconstructed under this section with substantially the
same number of units, it shall be deemed to be "existing housing" for
the purposes of subdivision (d) of Section 37001.5.
   (9) The department may waive any requirements of Section 50517.5
and any regulations promulgated thereunder that are inconsistent with
prompt and effective implementation of the program described in this
section. In addition, any rule, policy, or standard of general
application employed by the department in implementing the provision
of this section shall not be subject to the requirements of Chapter
3.5 (commencing with Section 11340) of Part 12 of Division 3 of Title
2 of the Government Code. Awards of funds made pursuant to this
section shall not be subjected to review or approval by the Local
Assistance Loan and Grant Committee of the department operating
pursuant to Subchapter 1 (commencing with Section 6900) of Chapter
6.5 of Title 25 of the California Code of Regulations.



50517.10.