California Assembly Bill AB692 Introduced / Bill

 BILL NUMBER: AB 692INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Torres FEBRUARY 21, 2013 An act to amend Section 50783 of the Health and Safety Code, relating to mobilehomes. LEGISLATIVE COUNSEL'S DIGEST AB 692, as introduced, Torres. Mobilehomes: loans. Existing law authorizes the Department of Housing and Community Development to make loans from the Mobilehome Park Purchase Fund to qualified mobilehome park residents, resident organizations, and nonprofit housing sponsors or local public entities to finance conversion of the parks to resident ownership and to make monthly housing costs affordable. This bill would make a technical, nonsubstantive change to this provision. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 50783 of the Health and Safety Code is amended to read: 50783. (a) The department may make loans from the fund to resident organizations for  the purpose   purposes  of financing mobilehome park conversion costs. (b) Loans provided pursuant to this section shall be for a term of no more than three years and shall bear interest at a rate of 3 percent per annum, unless the department finds that a lower interest rate is necessary and will not jeopardize the financial stability of the fund. (c) Loans provided pursuant to this section shall be for the minimum amount necessary to enable a resident organization to acquire and convert the mobilehome park. To the extent possible, the loan amount shall not exceed 50 percent of the approved conversion costs. However, the loan amount may be for up to 95 percent of the approved conversion costs attributable to the low-income households in the park when approved by the department. (d) The department may grant approval to exceed 50 percent of the approved conversion costs only if both of the following are demonstrated: (1) That the applicant has made an effort to secure additional funds from other sources and these funds are not available. (2) That the project would not be feasible, as determined by the department, without a waiver of the 50-percent financing limitation. (e) The total secured debt in a superior position to the department's loan plus the department's loan shall not exceed the value of the collateral securing the loan.