SECTIONS 50770 - California Statutes

HEALTH AND SAFETY CODE

SECTION 50770

50770. Four percent of the funds appropriated for the purposes of
this chapter shall be set aside in a Management Reserve Account in
the Rental Housing Construction Fund, which is hereby created. All
interest or other increment resulting from investment or deposit of
moneys in the account shall be deposited in the account.
The department may expend moneys in the account to provide debt
service payments or bid at a foreclosure sale, where a loan that is
superior to the loan of the department is in default, in order to
protect the security or regulatory interest of the department against
default, so that, to the extent feasible, the rental charges to
eligible households remain affordable. The department may provide
assistance from the fund to a rental housing development if the
agency or local finance entity affirmatively demonstrates that
assistance is necessary to avoid jeopardizing the fiscal integrity of
the rental housing development while maintaining affordable rents
and if the department determines that assistance is necessary to
offset unavoidable increases in costs to protect the security or
regulatory interests of the department.