1. (a) to rehabilitate a substandard rental housing development for occupancy by eligible households without the use of rental assistance subsidies; or
2. (b) to purchase and rehabilitate a substandard rental housing development for occupancy by eligible households without the use of rental assistance subsidies.

The Department shall provide direct deferred payment loans from the Fund to eligible sponsors to be used for the following purposes:

Note: Authority cited: Section 50662, Health and Safety Code; Reference: Sections 50669-50670, Health and Safety Code.