1. (a) Sponsors shall elect to receive program financing as either combination construction and permanent loans or permanent loans only.
2. (b) For projects involving new construction, the initial term of the loan shall be not less than 40 years, commencing on the date of initial occupancy of an assisted unit. For projects involving rehabilitation and either acquisition or refinancing, the initial loan term shall be not less than 30 years. For projects involving only rehabilitation, the initial loan term shall be not less than 20 years.
3. (c) Upon request by the sponsor, the department shall approve a loan term longer than that set forth in subdivision (b) provided that such longer term does not exceed the useful life of the rental housing development as determined by the department utilizing assessments provided by professionals from the construction and real estate industries, such as the conclusions of an appraiser or a structural engineer.

4. (d) Upon receipt of a request from a sponsor for a ten-year extension of the loan term, the department shall determine whether to approve the request based on the following considerations:

   1. (1) Whether the sponsor is in compliance with the Regulatory Agreement and agrees to continue to comply during the extended term;
   2. (2) Whether the extension is necessary to continue operations consistent with program requirements, and
   3. (3) Whether the extended term does not exceed the useful life of the rental housing development, as determined by the department utilizing assessments provided by professionals from the construction and real estate industries, such as the conclusions of an appraiser or a structural engineer.
5. (e) The department may condition the extension of such terms as it deems necessary to ensure compliance with the requirements of this program.

Note: Authority cited: Sections 50406(n), 50884 and 50895, Health and Safety Code. Reference: Sections 50893, Health and Safety Code.

History

1. New section filed 12-14-90 as an emergency; operative 12-14-90 (Register 91, No. 11). A Certificate of Compliance must be transmitted to OAL by 4-15-91 or emergency language will be repealed by operation of law on the following day.

2. Repealed by operation of law on 4-16-91.

3. New section filed 7-19-91 as an emergency; operative 7-19-91 (Register 92, No. 16). A Certificate of Compliance must be transmitted to OAL 11-6-91 or emergency language will be repealed by operation of law on the following day.

4. New section refiled 11-15-91 as an emergency; operative 11-15-91 (Register 92, No. 16). A Certificate of Compliance must be transmitted to OAL 3-16-92 or emergency language will be repealed by operation of law on the following day.

5. Certificate of Compliance as to 11-15-91 order transmitted to OAL 12-12-91 and filed 1-13-92 (Register 92, No. 16).