1. (a) Program funds shall be used for post-construction, permanent financing only, except under an agreement with California Housing Finance Agency to provide construction period financing to eligible Projects receiving financing from both California Housing Finance Agency and the Program.
2. (b) The initial term of the loan shall be 55 years, commencing on the date of recordation of the Program loan documents.

3. (c) Upon request by the Sponsor, the Department may approve a 10-year extension of the loan term if the Department determines both of the following are met:

   1. (1) The Sponsor is in compliance with the Regulatory Agreement and other Program loan documents and agrees to continue to comply during the extended term; and
   2. (2) The extension is necessary to continue operations consistent with Program requirements.
4. (d) The Department may condition the extension on such terms as it deems necessary to ensure compliance with the requirements of the Program.
5. (e) The Program loan shall be secured by the Project real property and improvements, subject only to liens, encumbrances and other matters of record approved by the Department. The Program loan shall have priority over loans from local public agencies and loans provided by the Affordable Housing Program administered by the Federal Home Loan Bank, provided that the Department may subordinate to these loans if they have a principal amount equal to or greater than twice the amount of the Program loan.
6. (f) Where the requirements of federal funding for a project, or the requirements of the low-income housing tax credits used in a project, would cause a violation of the requirements of these regulations, the requirements of these regulations may be modified as necessary to ensure program compatibility. Where the requirements of federal funding or tax credits create what are deemed to be minor inconsistencies as determined by the director of the Department, the Department may waive the requirements of these regulations as deemed necessary to avoid an unnecessary administrative burden. Any such modifications or waivers shall be included in the Regulatory Agreement or other documents governing the MHP loan.

Note: Authority cited: Sections 50406(n), 50675.1(c) and 50675.11, Health and Safety Code. Reference: Sections 50675.1(b), 50675.6 and 50675.8, Health and Safety Code.

History

1. New section filed 1-8-2002; operative 1-8-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).

2. Amendment of subsections (a) and (c)(1) filed 9-29-2003; operative 9-29-2003 pursuant to Government Code section 11343.4 (Register 2003, No. 40).