This text of California § 50720.2. (50720.2. (Amended by Stats. 2024, Ch. 580, Sec. 4.)) is published on Counsel Stack Legal Research, covering California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
(a)The Foreclosure Intervention Housing Preservation Program is hereby established. The department shall administer the program for the purpose of preserving affordable housing and promoting resident ownership or nonprofit organization ownership of residential real property.
(b)
(1)Upon appropriation by the Legislature, the program shall be administered by the department to provide loans and grants to eligible borrowers to support the acquisition of 1 to 25 unit properties meeting any of the following criteria:
(A)Real property subject to a trustee’s sale pursuant to Section 2924m of the Civil Code
wherein an eligible bidder has made a bid or represents an intention to bid using funds from the program.
(B)Real property subject to a preforeclosure intervention sale.
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(a)
The Foreclosure Intervention Housing Preservation Program is hereby established. The department shall administer the program for the purpose of preserving affordable housing and promoting resident ownership or nonprofit organization ownership of residential real property.
(b)
(1)
Upon appropriation by the Legislature, the program shall be administered by the department to provide loans and grants to eligible borrowers to support the acquisition of 1 to 25 unit properties meeting any of the following criteria:
(A)
Real property subject to a trustee’s sale pursuant to Section 2924m of the Civil Code
wherein an eligible bidder has made a bid or represents an intention to bid using funds from the program.
(B)
Real property subject to a preforeclosure intervention sale.
(C)
Real property subject to a foreclosure risk intervention sale.
(D)
Real property subject to a recorded notice of default.
(2)
Eligible borrowers shall be any one of the following:
(A)
Eligible bidders in Section 2924m of the Civil Code other than “prospective owner-occupants” as defined in paragraph (1) of subdivision (a) of Section 2924m of the Civil Code.
(B)
An organization
whose primary activity is the development and preservation of affordable housing that is at least one of the following:
(i)
An incorporated nonprofit organization as described in Section 501(c)(3) of the Internal Revenue Code (26 U.S.C. Sec. 501(c)(3)) that is exempt from taxation under Section 501(a) of that code (26 U.S.C. Sec. 501(a)).
(ii)
A nonprofit corporation as that term is defined in Section 50091.
(C)
A limited liability company that satisfies both of the following criteria:
(i)
A community land trust holds a controlling interest in the company.
(ii)
A community land trust is the
managing member of the company.
(3)
Up to 20 percent of the funds appropriated for this program may be expended for the costs to administer the program. Costs to administer the program include, but are not limited to, all of the following:
(A)
Costs to develop the guidelines required by this chapter, which may include, but is not limited to, the following:
(i)
Department staffing expenses incurred in developing the guidelines.
(ii)
Contracting with one or more program fund managers to develop the guidelines.
(iii)
Contracting with third-party consultants to develop guidelines.
(B)
Costs to develop lending criteria.
(C)
Costs to advertise the program.
(D)
Costs to develop technical assistance tools to support qualified entities in navigating the requirements and processes to apply for funding including, but not limited to, the following:
(i)
Training modules.
(ii)
Acquisition-rehabilitation specific financing templates and guidance, such as pro formas and worksheets.
(iii)
Best practice guides for engaging tenants before and after property acquisition, managing safe and accessible rehabilitation of occupied
buildings, facilitating resident ownership, and any other topic deemed appropriate by the department.
(iv)
Technical assistance with resident engagement and education, property assessment and due diligence, affordable housing operations management, acquisition-rehabilitation project financial assistance, construction, and property management.
(E)
Administrative costs of fund managers to implement the program pursuant to Section 50720.6.
(4)
Funds not committed to fund managers pursuant to Section 50720.6 as of December 31, 2025, or any funds returned from fund managers, shall be deposited into the Housing Rehabilitation Loan Fund to be made available for loans authorized by Chapter 5.5 (commencing with Section 50606) or for loans
authorized by Chapter 6.7 (commencing with Section 50675). Notwithstanding the requirements of Chapter 5.5, uncommitted or returned funds made available for purposes of Chapter 5.5 may be used to assist projects funded by the department or other public entities.
(5)
Not later than May 15, 2023, the department shall report to the chairs of the Assembly Committee on Budget and the Senate Committee on Budget and Fiscal Review on the implementation of this program, including the amount of funding disbursed and number, location, and cost of acquired properties, as well as the number of units acquired.
(c)
All repayments of program funds to fund managers, including loan principal and any interest collected on those loans, and any interest earned on the funds held by the fund managers
shall be deposited into separately maintained reuse accounts held by fund managers for purposes of the program. Fund managers shall use funds held in those reuse accounts for purposes of the program, which may include, but not be limited to, loans and grants to pay for repairs, maintenance, or improvements on properties acquired pursuant to the program.