55000. The Legislature finds and declares that there exist
throughout the state many buildings which are structurally inadequate
to safely withstand seismic forces of the magnitude predicted or
determined for their locations by seismic safety elements of local
general plans. This problem is particularly acute with respect to
residential hotels and with respect to commercial buildings in which
employees must work or to which the public is invited. The
Legislature further finds and declares that rehabilitation of these
buildings to meet current standards of earthquake safety is in the
public interest, but that private enterprise will be unable in many
cases to meet the high cost of making the necessary modifications
without the availability of long-term, low-interest loans for the
purpose.
It is, therefore, the intent of the Legislature in enacting this
division to authorize establishment of local loan programs to serve
this need at the lowest possible cost and upon favorable terms so
that owners of eligible buildings will be encouraged to make
modifications required to assure structural integrity in the event of
an earthquake.
55001. As used in this division:
(a) "Bonds" means bonds, notes, or other evidence of indebtedness
issued by a local agency pursuant to Part 2 (commencing with Section
55100) of this division, including bonds issued to refund previously
issued bonds or other indebtedness.
(b) "Eligible building" means a building existing on the effective
date of this section which is identified as hazardous pursuant to
Article 4 (commencing with Section 19160) of Chapter 2 of Part 3 of
Division 13, with the exception of the following:
(1) Industrial buildings for assembling, fabricating,
manufacturing and processing activities.
(2) Structures subject to the provisions of Part 1.5 (commencing
with Section 17910) of Division 13, other than a residential hotel or
apartment building containing six or more units or a commercial
building containing six or more residential units which is identified
as hazardous pursuant to this section.
(c) "Eligible costs" means all costs, including costs of design,
preparation, and inspection incurred in making structural or other
modifications to an eligible building, which are required in order to
meet reconstruction standards established by a local ordinance
pursuant to Sections 19162, 19163, and 19163.5, or to mitigate
potentially hazardous buildings, as defined by subdivision (a) of
Section 8875 of the Government Code including costs of payments
required by Section 7265.3 of the Government Code, and including
costs necessary to provide for the reasonable safety of the exterior
and interior of the eligible building and of interior fixtures and
appurtenances. Other eligible costs include nonseismic and
nonstructural costs, including, but not limited to, plaster,
wallboard, paint, and carpeting, and any other finishes deemed
necessary by the local building official to restore an eligible
building to its original conditions and suitable for occupancy.
(d) "Financing" means a loan made by the local agency pursuant to
this division to the owner of an eligible building for eligible costs
and which is secured by a deed of trust or mortgage upon the real
property improved thereby.
(e) "Local agency" means a city, county, or city and county.
(f) "Residential hotel" means any building containing six or more
guestrooms intended or designed to be used, or which are used,
rented, or hired out, to be occupied, or which are occupied, for
sleeping purposes by guests, which is also the primary residence of
those guests, but does not mean any hotel which is primarily used by
transient guests who do not occupy the hotel as their primary
residence.
55002. (a) Pursuant to this division, the local agency may provide
financing to pay for eligible costs to an owner of an eligible
building only if the legislative body of the local agency makes one
of the following findings:
(1) The owner to whom financing would be made available pursuant
to this division is unable to qualify for or could not afford
financing for eligible costs from private lending institutions.
(2) Absent the availability of financing pursuant to this
division, the eligible building would be demolished.
(3) Absent the availability of financing pursuant to the division,
the costs of modifying the eligible building to meet reconstruction
standards, pursuant to Sections 19162, 19163, and 19163.5, or to
mitigate potentially hazardous buildings, as defined by subdivision
(a) of Section 8875 of the Government Code, would cause severe
economic hardship to the businesses in the building.
(b) Financing provided by a local agency pursuant to this division
shall not, when combined with existing liens on the property, exceed
80 percent of the current appraised value of the property, as
determined by an independent, certified appraiser, unless existing
lienholders consent in writing to a higher loan-to-value ratio.
Notice of the intention to provide financing to the owner of the
property shall be given to existing lienholders of record not less
than 30 days prior to any vote of the local agency authorizing the
provision of financing to the owner of the property.
55002.5. Pursuant to this division, the local agency may provide
financing to pay for or buy out any existing note or deed of trust
which may be a lien against the real property on which an eligible
building is situated, not to exceed an 80 percent loan to appraised
value ratio. The local agency shall establish rules and regulations
to ensure the repayment of the funds being borrowed and shall
establish a minimum equity requirement that the owner of the eligible
building must have in the property.
55003. The local agency may contract with state or federally
chartered banks or savings and loan associations for originating or
servicing loans authorized by this division.
55004. The local agency shall adopt rules and regulations for the
administration of the financing program, which shall include, but not
be limited to, borrower eligibility criteria designed to assure the
fiscal integrity of the financing program while permitting maximum
application to existing buildings which have sufficient economic life
to warrant the amount of financing required. The regulations shall
specify procedures to be followed in the event of default.
55005. For the purposes of this division, the local agency shall
have the following powers in addition to any other powers granted by
this division:
(a) To make and execute contracts and all other instruments
necessary or convenient for the exercise of its powers and functions
under this division with any governmental agency, private
corporation, or other entity or individual.
(b) To determine the terms and conditions of any mortgage
instrument, deed of trust, or promissory note used or executed in
conjunction with financing pursuant to this division.
(c) To employ architects, engineers, attorneys, accountants,
construction and financial experts, and other advisers, consultants,
and agents as may be necessary in its judgment.
(d) To provide advice, technical information, and consultative and
technical service in connection with financing pursuant to this
division.
(e) To procure insurance against any loss in connection with its
property and other assets, including mortgages and deeds of trust, in
the amounts and from insurers as it deems desirable.
(f) To establish, revise from time to time, and charge and collect
fees and charges in connection with financing provided by the local
agency.
(g) To borrow money and issue bonds, as provided in this division.
(h) To do any and all things necessary or convenient to the
exercise of other powers under this division.
55006. The interest rate on financing provided pursuant to this
division shall be sufficient and shall be limited to the amount
necessary to pay the interest on the bonds issued therefor and to
defray costs of administration incurred by the local agency pursuant
to this division.
55007. The local agency may conduct a financing program under this
division in tandem with a residential rehabilitation financing
program under Part 13 (commencing with Section 37910) of Division 24
and may in such case, notwithstanding any other provision of law,
issue one form of bond, to be jointly secured as provided in both
this division and Part 13 (commencing with Section 37910) of Division
24.
55008. The exercise of the powers specified in this division shall
be in all respects for the benefit of the people of the state, for
their well-being and prosperity, and for the improvement of their
social and economic conditions, and the local agency shall not be
required to pay any tax or assessment on any property owned by the
local agency under the provisions of this division or upon the income
therefrom.
55009. Any bonds issued by the local agency under the provisions of
this division, their transfer, and the income therefrom shall at all
times be free from all direct and indirect taxation of every kind by
the state, including all taxes imposed pursuant to Part 11
(commencing with Section 23001) of Division 2 of the Revenue and
Taxation Code and imposed by cities, counties, cities and counties,
or other political subdivisions of this state, except inheritance and
gift taxes.
55000. The Legislature finds and declares that there exist
throughout the state many buildings which are structurally inadequate
to safely withstand seismic forces of the magnitude predicted or
determined for their locations by seismic safety elements of local
general plans. This problem is particularly acute with respect to
residential hotels and with respect to commercial buildings in which
employees must work or to which the public is invited. The
Legislature further finds and declares that rehabilitation of these
buildings to meet current standards of earthquake safety is in the
public interest, but that private enterprise will be unable in many
cases to meet the high cost of making the necessary modifications
without the availability of long-term, low-interest loans for the
purpose.
It is, therefore, the intent of the Legislature in enacting this
division to authorize establishment of local loan programs to serve
this need at the lowest possible cost and upon favorable terms so
that owners of eligible buildings will be encouraged to make
modifications required to assure structural integrity in the event of
an earthquake.
55001. As used in this division:
(a) "Bonds" means bonds, notes, or other evidence of indebtedness
issued by a local agency pursuant to Part 2 (commencing with Section
55100) of this division, including bonds issued to refund previously
issued bonds or other indebtedness.
(b) "Eligible building" means a building existing on the effective
date of this section which is identified as hazardous pursuant to
Article 4 (commencing with Section 19160) of Chapter 2 of Part 3 of
Division 13, with the exception of the following:
(1) Industrial buildings for assembling, fabricating,
manufacturing and processing activities.
(2) Structures subject to the provisions of Part 1.5 (commencing
with Section 17910) of Division 13, other than a residential hotel or
apartment building containing six or more units or a commercial
building containing six or more residential units which is identified
as hazardous pursuant to this section.
(c) "Eligible costs" means all costs, including costs of design,
preparation, and inspection incurred in making structural or other
modifications to an eligible building, which are required in order to
meet reconstruction standards established by a local ordinance
pursuant to Sections 19162, 19163, and 19163.5, or to mitigate
potentially hazardous buildings, as defined by subdivision (a) of
Section 8875 of the Government Code including costs of payments
required by Section 7265.3 of the Government Code, and including
costs necessary to provide for the reasonable safety of the exterior
and interior of the eligible building and of interior fixtures and
appurtenances. Other eligible costs include nonseismic and
nonstructural costs, including, but not limited to, plaster,
wallboard, paint, and carpeting, and any other finishes deemed
necessary by the local building official to restore an eligible
building to its original conditions and suitable for occupancy.
(d) "Financing" means a loan made by the local agency pursuant to
this division to the owner of an eligible building for eligible costs
and which is secured by a deed of trust or mortgage upon the real
property improved thereby.
(e) "Local agency" means a city, county, or city and county.
(f) "Residential hotel" means any building containing six or more
guestrooms intended or designed to be used, or which are used,
rented, or hired out, to be occupied, or which are occupied, for
sleeping purposes by guests, which is also the primary residence of
those guests, but does not mean any hotel which is primarily used by
transient guests who do not occupy the hotel as their primary
residence.
55002. (a) Pursuant to this division, the local agency may provide
financing to pay for eligible costs to an owner of an eligible
building only if the legislative body of the local agency makes one
of the following findings:
(1) The owner to whom financing would be made available pursuant
to this division is unable to qualify for or could not afford
financing for eligible costs from private lending institutions.
(2) Absent the availability of financing pursuant to this
division, the eligible building would be demolished.
(3) Absent the availability of financing pursuant to the division,
the costs of modifying the eligible building to meet reconstruction
standards, pursuant to Sections 19162, 19163, and 19163.5, or to
mitigate potentially hazardous buildings, as defined by subdivision
(a) of Section 8875 of the Government Code, would cause severe
economic hardship to the businesses in the building.
(b) Financing provided by a local agency pursuant to this division
shall not, when combined with existing liens on the property, exceed
80 percent of the current appraised value of the property, as
determined by an independent, certified appraiser, unless existing
lienholders consent in writing to a higher loan-to-value ratio.
Notice of the intention to provide financing to the owner of the
property shall be given to existing lienholders of record not less
than 30 days prior to any vote of the local agency authorizing the
provision of financing to the owner of the property.
55002.5. Pursuant to this division, the local agency may provide
financing to pay for or buy out any existing note or deed of trust
which may be a lien against the real property on which an eligible
building is situated, not to exceed an 80 percent loan to appraised
value ratio. The local agency shall establish rules and regulations
to ensure the repayment of the funds being borrowed and shall
establish a minimum equity requirement that the owner of the eligible
building must have in the property.
55003. The local agency may contract with state or federally
chartered banks or savings and loan associations for originating or
servicing loans authorized by this division.
55004. The local agency shall adopt rules and regulations for the
administration of the financing program, which shall include, but not
be limited to, borrower eligibility criteria designed to assure the
fiscal integrity of the financing program while permitting maximum
application to existing buildings which have sufficient economic life
to warrant the amount of financing required. The regulations shall
specify procedures to be followed in the event of default.
55005. For the purposes of this division, the local agency shall
have the following powers in addition to any other powers granted by
this division:
(a) To make and execute contracts and all other instruments
necessary or convenient for the exercise of its powers and functions
under this division with any governmental agency, private
corporation, or other entity or individual.
(b) To determine the terms and conditions of any mortgage
instrument, deed of trust, or promissory note used or executed in
conjunction with financing pursuant to this division.
(c) To employ architects, engineers, attorneys, accountants,
construction and financial experts, and other advisers, consultants,
and agents as may be necessary in its judgment.
(d) To provide advice, technical information, and consultative and
technical service in connection with financing pursuant to this
division.
(e) To procure insurance against any loss in connection with its
property and other assets, including mortgages and deeds of trust, in
the amounts and from insurers as it deems desirable.
(f) To establish, revise from time to time, and charge and collect
fees and charges in connection with financing provided by the local
agency.
(g) To borrow money and issue bonds, as provided in this division.
(h) To do any and all things necessary or convenient to the
exercise of other powers under this division.
55006. The interest rate on financing provided pursuant to this
division shall be sufficient and shall be limited to the amount
necessary to pay the interest on the bonds issued therefor and to
defray costs of administration incurred by the local agency pursuant
to this division.
55007. The local agency may conduct a financing program under this
division in tandem with a residential rehabilitation financing
program under Part 13 (commencing with Section 37910) of Division 24
and may in such case, notwithstanding any other provision of law,
issue one form of bond, to be jointly secured as provided in both
this division and Part 13 (commencing with Section 37910) of Division
24.
55008. The exercise of the powers specified in this division shall
be in all respects for the benefit of the people of the state, for
their well-being and prosperity, and for the improvement of their
social and economic conditions, and the local agency shall not be
required to pay any tax or assessment on any property owned by the
local agency under the provisions of this division or upon the income
therefrom.
55009. Any bonds issued by the local agency under the provisions of
this division, their transfer, and the income therefrom shall at all
times be free from all direct and indirect taxation of every kind by
the state, including all taxes imposed pursuant to Part 11
(commencing with Section 23001) of Division 2 of the Revenue and
Taxation Code and imposed by cities, counties, cities and counties,
or other political subdivisions of this state, except inheritance and
gift taxes.
55000. The Legislature finds and declares that there exist
throughout the state many buildings which are structurally inadequate
to safely withstand seismic forces of the magnitude predicted or
determined for their locations by seismic safety elements of local
general plans. This problem is particularly acute with respect to
residential hotels and with respect to commercial buildings in which
employees must work or to which the public is invited. The
Legislature further finds and declares that rehabilitation of these
buildings to meet current standards of earthquake safety is in the
public interest, but that private enterprise will be unable in many
cases to meet the high cost of making the necessary modifications
without the availability of long-term, low-interest loans for the
purpose.
It is, therefore, the intent of the Legislature in enacting this
division to authorize establishment of local loan programs to serve
this need at the lowest possible cost and upon favorable terms so
that owners of eligible buildings will be encouraged to make
modifications required to assure structural integrity in the event of
an earthquake.
55001. As used in this division:
(a) "Bonds" means bonds, notes, or other evidence of indebtedness
issued by a local agency pursuant to Part 2 (commencing with Section
55100) of this division, including bonds issued to refund previously
issued bonds or other indebtedness.
(b) "Eligible building" means a building existing on the effective
date of this section which is identified as hazardous pursuant to
Article 4 (commencing with Section 19160) of Chapter 2 of Part 3 of
Division 13, with the exception of the following:
(1) Industrial buildings for assembling, fabricating,
manufacturing and processing activities.
(2) Structures subject to the provisions of Part 1.5 (commencing
with Section 17910) of Division 13, other than a residential hotel or
apartment building containing six or more units or a commercial
building containing six or more residential units which is identified
as hazardous pursuant to this section.
(c) "Eligible costs" means all costs, including costs of design,
preparation, and inspection incurred in making structural or other
modifications to an eligible building, which are required in order to
meet reconstruction standards established by a local ordinance
pursuant to Sections 19162, 19163, and 19163.5, or to mitigate
potentially hazardous buildings, as defined by subdivision (a) of
Section 8875 of the Government Code including costs of payments
required by Section 7265.3 of the Government Code, and including
costs necessary to provide for the reasonable safety of the exterior
and interior of the eligible building and of interior fixtures and
appurtenances. Other eligible costs include nonseismic and
nonstructural costs, including, but not limited to, plaster,
wallboard, paint, and carpeting, and any other finishes deemed
necessary by the local building official to restore an eligible
building to its original conditions and suitable for occupancy.
(d) "Financing" means a loan made by the local agency pursuant to
this division to the owner of an eligible building for eligible costs
and which is secured by a deed of trust or mortgage upon the real
property improved thereby.
(e) "Local agency" means a city, county, or city and county.
(f) "Residential hotel" means any building containing six or more
guestrooms intended or designed to be used, or which are used,
rented, or hired out, to be occupied, or which are occupied, for
sleeping purposes by guests, which is also the primary residence of
those guests, but does not mean any hotel which is primarily used by
transient guests who do not occupy the hotel as their primary
residence.
55002. (a) Pursuant to this division, the local agency may provide
financing to pay for eligible costs to an owner of an eligible
building only if the legislative body of the local agency makes one
of the following findings:
(1) The owner to whom financing would be made available pursuant
to this division is unable to qualify for or could not afford
financing for eligible costs from private lending institutions.
(2) Absent the availability of financing pursuant to this
division, the eligible building would be demolished.
(3) Absent the availability of financing pursuant to the division,
the costs of modifying the eligible building to meet reconstruction
standards, pursuant to Sections 19162, 19163, and 19163.5, or to
mitigate potentially hazardous buildings, as defined by subdivision
(a) of Section 8875 of the Government Code, would cause severe
economic hardship to the businesses in the building.
(b) Financing provided by a local agency pursuant to this division
shall not, when combined with existing liens on the property, exceed
80 percent of the current appraised value of the property, as
determined by an independent, certified appraiser, unless existing
lienholders consent in writing to a higher loan-to-value ratio.
Notice of the intention to provide financing to the owner of the
property shall be given to existing lienholders of record not less
than 30 days prior to any vote of the local agency authorizing the
provision of financing to the owner of the property.
55002.5. Pursuant to this division, the local agency may provide
financing to pay for or buy out any existing note or deed of trust
which may be a lien against the real property on which an eligible
building is situated, not to exceed an 80 percent loan to appraised
value ratio. The local agency shall establish rules and regulations
to ensure the repayment of the funds being borrowed and shall
establish a minimum equity requirement that the owner of the eligible
building must have in the property.
55003. The local agency may contract with state or federally
chartered banks or savings and loan associations for originating or
servicing loans authorized by this division.
55004. The local agency shall adopt rules and regulations for the
administration of the financing program, which shall include, but not
be limited to, borrower eligibility criteria designed to assure the
fiscal integrity of the financing program while permitting maximum
application to existing buildings which have sufficient economic life
to warrant the amount of financing required. The regulations shall
specify procedures to be followed in the event of default.
55005. For the purposes of this division, the local agency shall
have the following powers in addition to any other powers granted by
this division:
(a) To make and execute contracts and all other instruments
necessary or convenient for the exercise of its powers and functions
under this division with any governmental agency, private
corporation, or other entity or individual.
(b) To determine the terms and conditions of any mortgage
instrument, deed of trust, or promissory note used or executed in
conjunction with financing pursuant to this division.
(c) To employ architects, engineers, attorneys, accountants,
construction and financial experts, and other advisers, consultants,
and agents as may be necessary in its judgment.
(d) To provide advice, technical information, and consultative and
technical service in connection with financing pursuant to this
division.
(e) To procure insurance against any loss in connection with its
property and other assets, including mortgages and deeds of trust, in
the amounts and from insurers as it deems desirable.
(f) To establish, revise from time to time, and charge and collect
fees and charges in connection with financing provided by the local
agency.
(g) To borrow money and issue bonds, as provided in this division.
(h) To do any and all things necessary or convenient to the
exercise of other powers under this division.
55006. The interest rate on financing provided pursuant to this
division shall be sufficient and shall be limited to the amount
necessary to pay the interest on the bonds issued therefor and to
defray costs of administration incurred by the local agency pursuant
to this division.
55007. The local agency may conduct a financing program under this
division in tandem with a residential rehabilitation financing
program under Part 13 (commencing with Section 37910) of Division 24
and may in such case, notwithstanding any other provision of law,
issue one form of bond, to be jointly secured as provided in both
this division and Part 13 (commencing with Section 37910) of Division
24.
55008. The exercise of the powers specified in this division shall
be in all respects for the benefit of the people of the state, for
their well-being and prosperity, and for the improvement of their
social and economic conditions, and the local agency shall not be
required to pay any tax or assessment on any property owned by the
local agency under the provisions of this division or upon the income
therefrom.
55009. Any bonds issued by the local agency under the provisions of
this division, their transfer, and the income therefrom shall at all
times be free from all direct and indirect taxation of every kind by
the state, including all taxes imposed pursuant to Part 11
(commencing with Section 23001) of Division 2 of the Revenue and
Taxation Code and imposed by cities, counties, cities and counties,
or other political subdivisions of this state, except inheritance and
gift taxes.
