Section 8010 - Individual LoansIndividual loans from the fund shall provide long term permanent financing to low-income residents for the purposes of acquiring an individual interest and achieving affordable housing costs. In order to be eligible for an individual loan, a low-income resident must possess the tenancy rights of Section 798.12 of the Civil Code, or have entered into one or more agreements to rent and occupy a park space and mobilehome prior to project application. The loans shall not exceed any of the following:
(1) To the extent possible, 50 percent of the acquisition cost of the individual interests including nonrecurring closing costs,(2) the need for assistance or(3) the maximum loan amount established pursuant to Section 8004(c). However, the loan amount may be approved for up to 95 percent of the approved acquisition costs of the individual interest in the park if the lower income resident can demonstrate that no other funding is available and the purchase would not otherwise be feasible. In addition, borrowers of individual loans shall possess no less than 5 percent equity in the collateral securing the loan. For the purposes of this section, equity does not include secured debt junior to the department's loan. The amount of any item eligible for funding with an individual loan shall be subject to departmental approval based on its necessity, reasonableness, eligibility and impact on the financial feasibility and security of the project. Individual 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). Where a local public entity acquires a park and applies for program assistance for the purchase of individual interests, the program may make individual loans when a simple majority of households residing in the park actually purchase, or have opened escrow to purchase, interests or spaces in the park.
Cal. Code Regs. Tit. 25, § 8010
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 (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, 50781, 50784 and 50786.5, 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 (3) filed 10-13-2015 pursuant to section 100, title 1, California Code of Regulations (Register 2015, No. 42).