California Code of Regulations › Title 25 - Housing and Community Development › Division 1 - Housing and Community Development › Chapter 7 - Department of Housing and Community Development Programs › Subchapter 13 - Mobile Home Park Resident Ownership Program › Article 2 - Program Requirements › Section 8004 - General Provisions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The department shall make loans to
					 eligible borrowers for eligible projects pursuant to this subchapter. Program
					 loans shall be subject to terms and conditions which meet the requirements of
					 the Code and this subchapter. Loans shall be secured by the best available
					 security. In all cases, the term of any loan shall not exceed the lesser of
					 either the term of the ownership interest or the economic life of the property,
					 but no more than 40 years. Program loans shall bear interest at the rate of
					 three percent (3%) simple interest per annum, unless the Department finds that
					 a lower interest rate is necessary and will not jeopardize the financial
					 stability of the Fund. Monthly payments shall be required for all loans unless
					 an alternative repayment schedule is approved pursuant to subsection (d). The
					 department may assess late fees or penalties for late payments not to exceed
					 more than 5% of the scheduled payment. Loans provided pursuant to this
					 subchapter shall not be assumable by another borrower, except where the
					 department determines that an assumption by another eligible borrower is
					 necessary to prevent a financial loss. The terms of assumption may be different
					 than originally underwritten and offer the greatest opportunity for full
					 repayment as determined by the department.
(b) In order to be eligible to apply for
					 assistance pursuant to this subchapter, a project must be a mobilehome park in
					 which at least one low income household is a resident. Parks to be acquired by
					 nonprofit housing sponsors and local public entities must have the support of
					 at least two-thirds of the residents living in the park in order to be eligible
					 to apply for program funding. In a resident owned park, the resident
					 organization must have the support of at least 2/3rds of the residents at the
					 time of application, and 2/3rds of the residents must participate as members of
					 the resident organization at the time of funding. The park upon completion of
					 the conversion must meet the minimum standards of the Mobilehome Parks Act.
					 Eligible Projects costs may include conventionally constructed dwellings and
					 nonresidential structures provided that such structures and the underlying land
					 are used by the resident organization as common recreational facilities, office
					 or storage space, or which generate revenue for the benefit of all residents of
					 the park, or which serve other purposes available to all residents of the
					 park.
(c) The department shall
					 establish maximum limits on the amount of funds which may be committed to a
					 project pursuant to this subchapter. The maximum loan limit for any single
					 project shall be based upon factors such as the amount of funds available,
					 anticipated program revenue, the required rural set-aside, and the size of
					 anticipated or pending loan applications. The limitation on commitment size
					 will be specified in each request for proposals and approved by the Director
					 when it is issued for this program.
(d) The department may consider requests for
					 alternative repayment schedules for program loans from applicants and
					 borrowers. Such requests shall propose the repayment schedule desired and
					 provide evidence that an alternative schedule is necessary for the financial
					 feasibility of the project and/or to achieve affordable housing costs. The
					 department may approve the request, in whole or in part, if the need is
					 demonstrated and the program's security interest will be adequately protected
					 through the alternative schedule. The decision to approve an alternative
					 repayment schedule shall be within the sole discretion of the department. All
					 loan applications for conversion or blanket loans that request an alternate
					 repayment schedule shall be reviewed by the committee prior to the director's
					 approval.
(e) Program funds may not
					 be used to facilitate the purchase of a park by a qualified nonprofit
					 corporation or a local public entity from a public entity that acquired the
					 park prior to the commitment of the loan from the program.
1.
						Amendment of section and NOTE filed 5-11-2001; operative 5-11-2001 pursuant to
						Government Code section 11343.4 (Register 2001, No. 19).
2.
						Amendment of subsections (a) and (d) filed 7-11-2005; operative 8-10-2005
						(Register 2005, No. 28).
3. Change without regulatory effect
						amending subsection (a) filed 10-13-2015 pursuant to section 100, title 1,
						California Code of Regulations (Register 2015, No.
						42).
Note: Authority cited: Sections 50406(n) and 50786(a),
						  Health and Safety Code. Reference: Sections 18200, et. seq. 50406, 50406.2,
						  50783, 50784 and 50786, Health and Safety
						  Code.