California Health and Safety Code

§ 50562

HSC § 50562 Effective Jun 30, 2025Div. 31 · Part 2 · Ch. 3.9

Statute text

(a)If a department loan is extended, subordinated, or paid off before the end of its term, the department approves the reinstatement of a qualifying unpaid matured loan, the department approves the extraction of equity from a development, or a new tax credit investment occurs, then the department shall enter into a new regulatory agreement with the development’s owner, or amend the existing agreement, and may add another regulatory agreement if the department determines it necessary. The agreement shall be binding upon the development’s owner and successors in interest upon sale or transfer of the development property, regardless of any prepayment of the loan. The agreement shall be recorded in the office of the county recorder in the county in which the development is located. The new or amended regulatory agreement shall:

(1)Set standards for tenant selection to ensure occupancy by the eligible households.

(2)Govern the terms of occupancy agreements.

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Legislative history

Amended by Stats. 2025, Ch. 22, Sec. 53. (AB 130) Effective June 30, 2025.