AB 692, as introduced, Torres. Mobilehomes: loans.
Existing law authorizes the Department of Housing and Community Development to make loans from the Mobilehome Park Purchase Fund to qualified mobilehome park residents, resident organizations, and nonprofit housing sponsors or local public entities to finance conversion of the parks to resident ownership and to make monthly housing costs affordable.
This bill would make a technical, nonsubstantive change to this provision.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 50783 of the Health and Safety Code is
2amended to read:
(a) The department may make loans from the fund to
4resident organizations forbegin delete the purposeend deletebegin insert purposesend insert of financing
5mobilehome park conversion costs.
6(b) Loans provided pursuant to this section shall be for a term
7of no more than three years and shall bear interest at a rate of 3
P2 1percent per annum, unless the department finds that a lower interest
2rate is necessary and will not jeopardize the financial stability of
3the fund.
4(c) Loans provided pursuant to this section shall be for the
5minimum amount necessary to
enable a resident organization to
6acquire and convert the mobilehome park. To the extent possible,
7the loan amount shall not exceed 50 percent of the approved
8conversion costs. However, the loan amount may be for up to 95
9percent of the approved conversion costs attributable to the
10low-income households in the park when approved by the
11department.
12(d) The department may grant approval to exceed 50 percent of
13the approved conversion costs only if both of the following are
14demonstrated:
15(1) That the applicant has made an effort to secure additional
16funds from other sources and these funds are not available.
17(2) That the project would not be feasible, as determined by the
18department, without a waiver of the 50-percent financing limitation.
19(e) The total
secured debt in a superior position to the
20department’s loan plus the department’s loan shall not exceed the
21value of the collateral securing the loan.
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