Pub. Resources Code, § 75218

For purposes of the AHSC Housing Allocation provided pursuant to paragraph (1) of subdivision (b) of Section 75212, all of the following apply:

(a) For any loans issued pursuant to this chapter, principal and accumulated interest is due and payable upon completion of the term of the loan. The loan shall bear simple interest at the rate of 3 percent per annum on the unpaid principal balance. The committee shall require annual loan payments in the minimum amount necessary to cover the costs of project monitoring. For the first 30 years of the loan term, the amount of the required loan payments shall not exceed 0.42 percent per annum.

(b) All moneys received by the committee in repayment of loans made pursuant to this chapter, including interest and payments in advance in lieu of future interest, shall be deposited in the Housing Rehabilitation Loan Fund established by Section 50661 of the Health and Safety Code, and notwithstanding Section 13340 of the Government Code, are continuously appropriated to the Department of Housing and Community Development for the purposes of the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code), except as otherwise provided in this section.

(c) The committee may designate an amount not to exceed 1.5 percent of funds appropriated for use pursuant to this section for the purpose of curing or averting a default on the terms of any loan or other obligation by the recipient of financial assistance, or bidding at any foreclosure sale where the default or foreclosure sale would jeopardize the committee’s security in the rental housing development assisted pursuant to this chapter. The funds so designated shall be known as the “default reserve.”

(d) The committee may use default reserve funds made available pursuant to this section to repair or maintain any rental housing development assisted pursuant to this chapter that was acquired to protect the committee’s security interest.

(e) The payment or advance of funds by the committee pursuant to this section shall be exclusively within the committee’s discretion, and no person shall be deemed to have any entitlement to the payment or advance of those funds. The amount of any funds expended by the committee for the purpose of curing or averting a default shall be added to the loan amount secured by the rental housing development and shall be payable to the committee upon demand.

(f) All moneys set aside for the default reserve by the committee pursuant to this section shall be deposited in the Housing Rehabilitation Loan Fund established by Section 50661 of the Health and Safety Code, and, notwithstanding Section 13340 of the Government Code, are continuously appropriated to the committee for the purpose of the default reserve set forth above in this section.