SECTIONS 51180-51182 - California Statutes

HEALTH AND SAFETY CODE

SECTION 51180-51182

51180. As used in this article:
(a) "Subordinated loan" means a deferred payment mortgage loan,
which is a second trust deed used in connection with other financing
from the agency for the purpose of making the development of housing
feasible where it would not be feasible without such loan. No loan
shall be made pursuant to this article unless it is secured by a
second trust deed.
(b) "Local agency" means a city, county, city and county,
redevelopment agency, or housing authority.

51181. The agency shall accept applications from housing sponsors
for subordinated loans for rental housing developments upon which
construction commences on or after January 1, 1983. Not less than 20
percent of the units in the rental housing development shall be made
available on a priority basis to lower income households, as defined
in Section 50079.5.

51182. The agency shall determine the manner in which subordinated
loans are to be repaid. Potential methods of repayment may include,
but not be limited to:
(a) An interest payment of 3 percent to be made from the positive
cash flows of the project before payment to any other equity investor
or mortgage loan holder is made.
(b) Repayment upon conversion or the term of the bond, whichever
is less, to the state, including an interest payment of 3 percent.