California Health and Safety Code

§ 50530.5

HSC § 50530.5 Effective Jan 1, 2020Div. 31 · Part 2 · Ch. 3.5

Statute text

As used in this chapter:

(a)“Housing” includes, but is not limited to, manufactured housing.

(b)“Predevelopment loan” means a loan for required expenses, other than administrative and construction, that are incurred by eligible sponsors in the process of, and prior to, securing long-term financing for construction, conversion, preservation, or rehabilitation of assisted housing, and that are recoverable once long-term financing is obtained. The purposes for which predevelopment loans may be made include, but are not limited to, the costs of, or the costs associated with, land purchase or options to buy land; options or deposits to buy or preserve existing government-assisted rental housing for the purpose of preserving the affordability of the units; professional services such as architectural, engineering, or legal services; permit or application fees; and bonding, site preparation, related water or sewer development, or material expenses. In addition, the loans may be made for the purpose of extending the time for exercising an option or extending the time period for repayment of an advance previously obtained. These loan funds may be deposited in banks as compensating balances to establish lines of credit for participating nonprofit corporations.

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Legislative history

Amended by Stats. 2019, Ch. 660, Sec. 8. (AB 1010) Effective January 1, 2020.