Section 8008 - Blanket Loans(a) Blanket loans from the fund shall provide long term permanent financing to resident organizations, qualified nonprofit housing sponsors and local public entities for the purpose of achieving affordable housing costs for low-income residents. The loans shall not exceed any of the following:
(1) To the extent possible, 50 percent of the conversion costs attributable to low-income spaces. The department may approve loan amounts up to 95 percent of the approved conversion costs attributable to the percentage of lower income households in the park. The department may grant the higher loan amounts only if the project applicants demonstrate that no other funds are available and the project would not otherwise be feasible.(2) the aggregate need for assistance of low-income residents who possess the tenancy rights of Sections 798.12 of the Civil Code. The amount approved for a blanket loan, as a percentage of the total project cost, shall not exceed the percentage of park residents who are low income.(3) the loan limit established pursuant to Section 8004(c). Projects receiving blanket loans shall have department-approved programs of assistance for low-income residents. A program of assistance shall establish the financial mechanism used by a resident organization to direct the benefits of a blanket loan to low-income residents, which may include, but is not limited to rent skewing and internal loans. The amount of any item eligible for funding with a blanket loan shall be subject to department approval based on its necessity, reasonableness, eligibility, and impact on the financial feasibility and security of the project.
Blanket loans shall not have terms in excess of 40 years. The loans shall have monthly payments amortized over the term of the loan unless an alternative repayment schedule has been approved pursuant to Section 8004 (d). In addition, the total debt secured in a senior position to the department's loan plus the department's loan shall not exceed 115% of the value of the collateral.
(b) Blanket loans may provide funds to eligible borrowers for the following eligible costs, to be prorated or limited to pursuant to subdivision (a):(1) to repay a conversion loan or replace interim or short-term financing that was used to acquire or rehabilitate the park. For purposes of this subchapter, "short-term" means not over three years;(2) to pay, to the extent approved by the department, any costs eligible for conversion loans listed in subdivision 8006(b);(3) to establish operating reserves;(4) to provide long-term financing for a project;(5) to supplement other public or private financing;(6) to enable low-income residents to obtain individual interests; or(7) to enable low-income residents to remain in the project.(8) subject to Section 50784(h) of the Code, program funding may be used to finance the cost of relocating the residents of a mobilehome park to a more suitable site within the same jurisdiction.(9) to pay developer fees for qualified nonprofit housing sponsors, not to exceed tax credit limits if the project receives federal tax credits, or if the project does not receive tax credits, five percent of total project cost or $100,000, whichever is greater.(c) Nonprofit Housing Sponsors shall comply with the following requirements in addition to those in subdivision a and b:(1) The parks must have at least 30% low income residents at the time of funding.(2) Parks that are acquired by a nonprofit housing sponsors shall ensure resident participation by either having resident representation on their Board or by establishment of a permanent resident advisory board.Cal. Code Regs. Tit. 25, § 8008
1. Amendment of section and NOTE filed 5-11-2001; operative 5-11-2001 pursuant to Government Code section 11343.4 (Register 2001, No. 19).
2. Change without regulatory effect amending subsection (a)(3) filed 10-13-2015 pursuant to section 100, title 1, California Code of Regulations (Register 2015, No. 42). Note: Authority cited: Sections 50406(n) and 50786(a), Health and Safety Code. Reference: Sections 50406, 50406.2, 50784 and 50785(a)(5), Health and Safety Code; and Sections 798.12 and 799.45(b), Civil Code.
1. Amendment of section and Note filed 5-11-2001; operative 5-11-2001 pursuant to Government Code section 11343.4(Register 2001, No. 19).
2. Change without regulatory effect amending subsection (a)(3) filed 10-13-2015 pursuant to section 100, title 1, California Code of Regulations (Register 2015, No. 42).