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,begin delete if the loan was issued under specified programsend deletebegin insert
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 applyend insert.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 50406.8 is added to the Health and Safety
2Code, to read:
Notwithstanding any other law, the department, upon
4the request of the borrower of any loan issued by the department
5that has reached maturity, may do either of the following, at the
6option of the borrower:
7(a) Reloan the original amount of the matured loan, plus accrued
8interest, on the same terms and conditions as the original loan.
9(b) Restructure the loan,begin delete if the original loan was issued pursuant begin insert in which event the provisions of
10to Section 50515.2 or 50517.7end delete
11Chapter 3.9
(commencing with Section 50560) shall applyend insert.
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