1. (a) Deferred payment loans shall bear simple interest of three percent per annum on the unpaid principal balance. Interest shall accrue on the deferred payment loan from the date on which the construction is completed and shall continue to accrue at such a rate until the deferred payment loan principal and interest are paid in full.
2. (b) The total amount of outstanding principal and interest shall be due and payable in full at the end of the loan term. A borrower may repay the entire deferred payment loan amount at any time without penalty.
3. (c) Upon request by the borrower, the department may approve a voluntary prepayment plan, either at loan closing or any time thereafter. The plan may allow for the periodic payment of interest, or principal and interest, prior to the end of the loan term, unless the administration and processing of such prepayments would exceed the department's processing cost. At the request of the borrower, the plan may be revised or cancelled without penalty.

4. (d) If the deferred payment loan is extended by the department pursuant to section 8047(b), the borrower shall be required to make amortized payments of interest, or principal and interest to the extent that:

   1. (1) amortized payments when combined with other housing payments may equal, but not exceed the borrower's ability to afford his or her housing costs; or
   2. (2) the administration and processing of such payments would not exceed the department's processing cost.

Note: Authority cited: Section 50668.5(g), Health and Safety Code. Reference: Sections 50662 and 50668.5(c), Health and Safety Code.

History

1. New section filed 11-30-89 as an emergency; operative 11-30-89 (Register 89, No. 49). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 3-30-90.

2. New section refiled 3-26-90 as an emergency; operative 3-30-90 (Register 90, No. 16). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 7-30-90.

3. New section filed 7-26-90 as an emergency; operative 7-26-90 (Register 90, No. 38). A Certificate of Compliance must be transmitted to OAL by 11-23-90 or emergency language will be repealed by operation of law on the following day.

4. Amendment of subsection (a) filed 8-27-90 as an emergency; operative 8-27-90 (Register 90, No. 42). A Certificate of Compliance must be transmitted to OAL by 12-26-90 or emergency language will be repealed by operation of law on the following day.

5. New section refiled 11-16-90 as an emergency; operative 11-16-90 (Register 90, No. 51). A Certificate of Compliance must be transmitted to OAL by 3-18-91 or emergency language will be repealed by operation of law on the following day.

6. Readoption of 8-27-90 order filed 12-21-90 as an emergency; operative 12-21-90 (Register 91, No. 7). A Certificate of Compliance must be transmitted to OAL by 4-22-91 or emergency language will be repealed by operation of law on the following day.

7. Certificate of Compliance as to 11-30-89 order, readopted and operative on 3-30-90, 7-26-90 and 11-16-90, including amendment of subsections (a), (c) and (d) transmitted to OAL 11-30-90 and filed 12-31-90 (Register 91, No. 7).