1. (a) The Department may commit funds to eligible sponsors for the provision of mortgage assistance to eligible households engaged in self-help construction by either of the following two methods:

   1. (1) As deferred payment loans directly eligible households pursuant to Section 7572, or to cooperatives, pursuant to Section 7576.
   2. (2) In the form of payment(s), or on behalf of, eligible households in order to reduce the mortgage interest costs of the households, pursuant to Section 7578.
2. (b) Before providing mortgage assistance under (a), eligible sponsors may use the funds for certain development costs pursuant to Article 6.

Note: Authority cited: Section 50697(d), Health and Safety Code. Reference: Section 50696, Health and Safety Code.