Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Eligible Sponsors must have site control of the proposed project property by one of the following means, in the name of the Eligible Sponsor or an entity controlled by the Eligible Sponsor:
(1) Fee title.
(2) A leasehold interest on the project property with provisions that enable the Eligible Sponsor to make improvements on and encumber the property, provided that the terms and conditions of any proposed lease shall permit compliance with all Predevelopment Loan requirements.
(3) An enforceable option to purchase or lease which shall extend, or may be extended, for a minimum of 3 months beyond the deadline for application submittal. The Department may accept options of less than 3 months if the Eligible Sponsor provides evidence satisfactory to the Department that it has sufficient committed financing to acquire the property prior to expiration of the option.
(4) A disposition and development agreement with a public agency.
(5) An agreement with a public agency that gives the Eligible Sponsor exclusive rights to negotiate with that agency for acquisition of the site, provided that the major terms of the acquisition have been agreed to by both parties; or
(6) A land sales contract, or other enforceable agreement for the acquisition of the property.
(b) Housing assisted by the Predevelopment Loan Fund must be Assisted Housing at least 51% of which is designated to be occupied by Persons of Low Income and affordable to such persons in accordance with Section 6910 et seq. of this Division.
(c) No Predevelopment Loan may be made unless the Department may reasonably anticipate that a commitment can be obtained by the Eligible Sponsor for Construction Financing or Permanent Financing that will permit occupancy by Persons of Low Income.
(d) In making Predevelopment Loans, the Department may consider, but need not be limited to, the following factors:
(1) The past achievements of the Applicant or the relevant experience of the Applicant's board or consultant;
(2) The general availability of public financing for the Assisted Housing;
(3) The need for the Assisted Housing;
(4) The proposed cost of the land and the Assisted Housing;
(5) The number of units assisted by the Predevelopment Loan in relation to the loan amount;
(6) Whether the Assisted Housing will incorporate innovative or energy efficient design and techniques which promote affordable development costs and/or operating expenses;
(7) The number or percentage of units in the Assisted Housing that will be occupied by Very Low Income Persons;
(8) Whether the Assisted Housing will be located within one quarter-mile of schools, major employment centers, medical facilities, grocery stores, pharmacies, parks, and/or police and fire stations,
(9) If the Applicant is a Local Government Agency, the degree to which the city or county in which the Assisted Housing is located has complied with State Housing Element Law (Government Code Section 65580 et. seq.), in accordance with evaluation criteria established by the Department. Failure of the Applicant to comply with State Housing Element Law may be grounds for disapproving a Predevelopment Loan application.
(e) To the extent feasible, the Department shall ensure a reasonable geographic distribution of the funds. Other things being equal, the Department shall give priority to assisting developments that meet either of the following requirements:
(1) The developments will be located in Public Transit Corridors.
(2) The developments will be used for the Preservation and acquisition of existing government-assisted rental housing at risk of conversion to market-rate use. Within this category, the Department shall give priority to those applications that include matching financing from local redevelopment agencies or federal programs.
(f) The Department shall, in each Notice of Funding Availability (NOFA) issued for the program, set a minimum funding target for Rural Areas based on the lesser of:
(1) Historical level of awards made under the Rural Predevelopment Loan Program (PDLP-R), or
(2) Twenty percent (20%) of available funds at the time of NOFA issuance.
1. Amendment filed 4-7-78; effective thirtieth day thereafter (Register 78, No. 14).
2. Amendment filed 1-5-82; effective thirtieth day thereafter (Register 82, No. 2).
3. Amendment filed 8-13-85; effective thirtieth day thereafter (Register 85, No. 33).
4. Repealer and new section filed 9-19-2003; operative 10-19-2003 (Register 2003, No. 38).
Note: Authority cited: Sections 50402 and 50406(n), Health and Safety Code. Reference: Sections 50530, 50530.5, 50531 and 50532, Health and Safety Code.
