BILL NUMBER: AB 692	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Torres

                        FEBRUARY 21, 2013

   An act to amend Section 50783 of the Health and Safety Code,
relating to mobilehomes.


	LEGISLATIVE COUNSEL'S DIGEST


   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 1.  Section 50783 of the Health and Safety Code is amended
to read:
   50783.  (a) The department may make loans from the fund to
resident organizations for  the purpose  
purposes  of financing mobilehome park conversion costs.
   (b) Loans provided pursuant to this section shall be for a term of
no more than three years and shall bear interest at a rate of 3
percent per annum, unless the department finds that a lower interest
rate is necessary and will not jeopardize the financial stability of
the fund.
   (c) Loans provided pursuant to this section shall be for the
minimum amount necessary to enable a resident organization to acquire
and convert the mobilehome park. To the extent possible, the loan
amount shall not exceed 50 percent of the approved conversion costs.
However, the loan amount may be for up to 95 percent of the approved
conversion costs attributable to the low-income households in the
park when approved by the department.
   (d) The department may grant approval to exceed 50 percent of the
approved conversion costs only if both of the following are
demonstrated:
   (1) That the applicant has made an effort to secure additional
funds from other sources and these funds are not available.
   (2) That the project would not be feasible, as determined by the
department, without a waiver of the 50-percent financing limitation.
   (e) The total secured debt in a superior position to the
department's loan plus the department's loan shall not exceed the
value of the collateral securing the loan.