Cal. HSC § 50410 — California Code / Code hsc / Division 31 / Part 2 / Chapter 1 / Section 50410
Section 50410
Status: in_force

(a) There is hereby established in the State Treasury the Affordable Housing Default Reserve Account. All interest or other increments resulting from the investment of moneys in the Affordable Housing Default Reserve Account shall be deposited in the account, notwithstanding Section 16305.7 of the Government Code.

(b) Notwithstanding Section 13340 of the Government Code, all moneys in the account are continuously appropriated to the department for the purpose 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 rental housing development assisted by the department.

(c) The department may use funds in the account to repair or maintain any rental housing development assisted by the department that was acquired to protect the department’s security interest.

(d) The payment or advance of funds by the department from the account 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.

(e) The amount of any funds expended by the department for the purposes of curing or averting a default shall be added to the loan amount secured by the rental housing development and shall be payable to the department upon demand.

(f) Notwithstanding any other law, the Department of Finance may transfer to the Affordable Housing Default Reserve Account, for expenditure by the department, the amounts in the all of the following funds or programs:

(1) The Joe Serna, Jr. Farmworker Housing Grant Fund, pursuant to Section 50517.6.

(2) The Multifamily Housing Program, pursuant to subdivision (a) of Section 50675.10.

(3) The Housing Rehabilitation Loan Fund, pursuant to subparagraph (C) of paragraph (5) of subdivision (b) of Section 50668.5, subdivision (c) of Section 53566, subdivision (c) of Section 987.010 of the Military and Veterans Code, and subdivisions (c) and (f) of Section 75218 of the Public Resources Code.

(4) The Transit-Oriented Development Implementation Fund, pursuant to subdivision (f) of Section 53566.

(5) The Housing for Veterans Fund, pursuant to subdivision (f) of Section 987.010 of the Military and Veterans Code.

(6) The No Place Like Home Fund, pursuant to paragraph (1) of subdivision (f) of Section 5849.8 of the Welfare and Institutions Code.

(7) The Family Housing Demonstration Account and the Rental Housing Construction Fund, pursuant to subdivision (b) of Section 50883.5.

(g) Notwithstanding Section 10231.5 of the Government Code, during any fiscal year, if the department spends a total of more than 25 percent of the balance that was in the Affordable Housing Default Reserve Account at the start of that fiscal year, then the department shall, within 30 days of surpassing that amount, provide written notice to the Joint Legislative Budget Committee. The notice shall include all of the following:

(A) The starting balance in the Affordable Housing Default Reserve Account for that fiscal year.

(B) A list of each expenditure made during that fiscal year and the total amount spent.

(C) The purpose of each expenditure made during that fiscal year.

(D) The balance in the Affordable Housing Default Reserve Account as of the date of the notice.

(E) The department’s assessment of the risk of additional defaults for the remainder of that fiscal year and the following fiscal year.