BILL NUMBER: AB 2161 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 23, 2014
AMENDED IN ASSEMBLY MARCH 28, 2014
INTRODUCED BY Assembly Member Chau
FEBRUARY 20, 2014
An act to add Section 50406.8 to the Health and Safety Code,
relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 2161, as amended, Chau. Affordable housing.
Existing law authorizes the Department of Housing and Community
Development to provide technical assistance to groups and persons
with various housing needs and to administer various housing loan
programs. Existing law authorizes the department to extend the term
of existing multifamily housing loans made under specified programs
upon the request of any borrower, subject to certain conditions, as
provided.
This bill would authorize the department, upon request of the
borrower of any loan issued by the department that has reached
maturity, either to reloan the original amount of the matured loan,
plus accrued interest, on the same terms and conditions as the
original loan, or to restructure the loan, if the loan was
issued under specified programs in which event
specified provisions relating to the approval of an extension of a
department loan, the subordination of a department loan to new debt,
or an investment of tax credit equity under specified rental housing
finance programs, shall apply .
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 50406.8 is added to the Health and Safety Code,
to read:
50406.8. Notwithstanding any other law, the department, upon the
request of the borrower of any loan issued by the department that has
reached maturity, may do either of the following, at the option of
the borrower:
(a) Reloan the original amount of the matured loan, plus accrued
interest, on the same terms and conditions as the original loan.
(b) Restructure the loan, if the original loan was issued
pursuant to Section 50515.2 or 50517.7 in which event
the provisions of Chapter 3.9 (commencing with Section
50560) shall apply .