Housing programs: financing., the official text

An act to add Section 50406.4.7 to the Health and Safety Code, relating to housing.

LEGISLATIVE COUNSEL'S DIGEST

Existing law establishes the Department of Housing and Community Development and requires it to administer various programs intended to promote the development of housing, as specified, pursuant to which the department provides financial assistance in the form of deferred payment loans to pay for the eligible costs of development of specified types of housing projects. Existing law sets forth various general powers of the department in implementing these programs, including authorizing the department to enter into long-term contracts or agreements of up to 30 years for the purpose of servicing loans or grants or enforcing regulatory agreements or other security documents.
This bill would permit the department to waive payment of residual receipts or minimum annual loan payments used to cover the cost of project monitoring required under a department regulatory agreement, based on the assessment by the department’s actual cost in combination with a project’s ability to pay.

The people of the State of California do enact as follows:

SECTION 1.
Section 50406.4.7 is added to the Health and Safety Code, to read:
50406.4.7.
Notwithstanding any other law, to improve the fiscal integrity of a development financed with departmental resources, the department, in its sole discretion, may waive payment of residual receipts or minimum annual loan payments used to cover the cost of project monitoring required under a department regulatory agreement, based on the assessment by the department’s actual cost in combination with a project’s ability to pay.