1. (a) Loan Limits:

   1. (2) Exceptions to these limits may be approved by the Director if warranted by the presence of extraordinary conditions, such as high prevailing costs of acquiring rental housing developments in certain localities or the need for extensive structural rehabilitation work required by the state or local building and safety codes.
   2. (3) The maximum deferred payment loan plus other indebtedness against the property shall not exceed 90 percent of the sum of the fair market value of the rental housing development prior to rehabilitation or acquisition and rehabilitation plus the anticipated cost of the rehabilitation work to be undertaken. A nonprofit or local public entity sponsor may receive a 100 percent loan if it demonstrates the need for full financing.

   (1)

   Small Unit

   Large Unit

   Residential

   (less than

   (3 bedrooms

   Hotel Unit

   3 bedrooms)

   or more)

   Rehabilitation

   $15,000

   $25,000

   $35,000

   Acquisition/Rehabilitation

   $25,000

   $35,000

   $45,000

   For rehabilitation of a single-family dwelling the loan limit is $45,000 for a project of up to three bedrooms, plus $10,000 for each additional bedroom beyond three bedrooms. For acquisition/rehabilitation of a single-family dwelling, the loan limit is $160,000 for a project of up to three bedrooms, plus $40,000 for each additional bedroom beyond three bedrooms.

2. (b) Loan Rates:

   1. (1) Loans shall bear simple interest at the rate of 3 percent per annum on the original principal balance disbursed, to be paid annually. However, the Department may reduce or eliminate interest payments on a loan for any year, or alternatively defer interest payments until the deferred payment loan is due, if the Department determines that payment of interest will threaten the provision of affordable rents or the fiscal integrity of the rental housing development.
   2. (2) Principal and any approved deferred interest payments shall be deferred and paid in a single payment at the expiration of the term of the loan or pursuant to section 7472.
3. (c) Term: Loans shall have a term of the lesser of 30 years or the useful life of the housing development, as determined by an appraisal of the property accepted by the Department.

The following loan limits, rates and terms shall apply to all loans made pursuant to this subchapter.

Note: Authority cited: Section 50662 and 50668.5, Health and Safety Code. Reference: Section 50670, Health and Safety Code.

History

1. Amendment filed 10-5-89 as an emergency pursuant to Government Code section 11346.1; operative 10-10-89 (Register 89, No. 41). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 2-7-90. For prior history, see Register 89, No. 24.

2. Amendment refiled 2-5-90 as an emergency pursuant to Health and Safety Code section 50668.5(g) and Government Code section 11346.1(h); operative 2-7-90 (Register 90, No. 6). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 6-7-90.

3. Amendment of subsection (a)(1) filed 3-5-90 as an emergency; operative 3-5-90 (Register 90, No. 12). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 7-3-90.

4. Certificate of Compliance as to 2-5-90 and 3-5-90 orders including amendment transmitted to OAL 3-16-90 and filed 4-16-90; operative 5-16-90 (Register 90, No. 20).