51050-51070

HEALTH AND SAFETY CODE
SECTION 51050-51070




51050.  The agency shall have all of the following powers:
   (a) To sue and be sued in its own name.
   (b) To have an official seal and to alter the same at pleasure.
   (c) To have perpetual succession.
   (d) To maintain offices at any place or places within the state
which it may designate.
   (e) To adopt, and from time to time amend and repeal, by action of
the board, either resolutions, or rules or regulations, not
inconsistent with this part, to carry into effect the powers and
purposes of the agency and the conduct of its business, except where
this part expressly requires the agency to act by rule or regulation.
If the agency acts by rule or regulation, the rule or regulation
shall be adopted, amended, repealed, and published in accordance with
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code.
   (f) Notwithstanding any other provision of law, to make and
execute contracts and all other instruments necessary or convenient
for the exercise of its powers and functions under this part with any
governmental agency, private corporation or other entity, or
individual, and to contract with any local public entity for
processing of any aspect of financing housing developments. Contracts
made or executed under the authority of this part shall not be
subject to any applicable provision of law requiring competitive
bidding or the supervision or approval of another division or officer
of state government.
   (g) To acquire real or personal property, or any interest therein,
on either a temporary or long-term basis in its own name by gift,
purchase, transfer, foreclosure, a deed in lieu of foreclosure,
lease, option, or otherwise, including easements or other incorporeal
rights in property.
   (h) To hold, sell, assign, lease, encumber, mortgage, or otherwise
dispose of any real or personal property or any interest therein; to
hold, sell, assign, or otherwise dispose of any mortgage interest
owned by it, under its control or custody, or in its possession; and,
as applicable, to do any of the acts specified in this subdivision
by public or private sale, with or without public bidding,
notwithstanding any other provision of law.
   (i) To release or relinquish any right, title, claim, lien,
interest, easement, or demand however acquired, including any equity
or right of redemption in real property foreclosed by it or acquired
by it by a deed in lieu of foreclosure.
   (j) To determine the terms and conditions of any mortgage
instrument, deed of trust, or promissory note used or executed in
conjunction with the financing of any housing development.
   (k) To employ architects, engineers, attorneys, accountants,
housing construction and financial experts, and such other advisers,
consultants, and agents as may be necessary in its judgment and to
fix their compensation.
   (l) To provide advice, technical information, and consultative and
technical service in connection with the financing of housing
developments pursuant to this part.
   (m) Notwithstanding any other provision of law, to insure or
reinsure against any loss in connection with its property and other
assets, including mortgages and mortgage loans, in amounts, in the
manner, and from those insurers as it deems desirable.
   (n) To establish, revise from time to time, and charge and collect
fees and charges in connection with loans made or insured by the
agency.
   (o) To borrow money and issue bonds, as provided in this part.
   (p) To enter agreements and perform acts as are necessary to
obtain and maintain federal housing subsidies for use in connection
with housing developments.
   (q) To provide bilingual staff and make available agency
publications in a language, other than English, where necessary to
effectively serve all groups for which those services or publications
are made available.
   (r) To require any individual, corporation, or other legal entity
operating, managing, or providing maintenance services for a housing
development or a residential structure to maintain a current
certificate of qualification developed and approved by the agency.
   (s) To do any and all things necessary to carry out its purposes
and exercise the powers expressly granted by this part.



51050.1.  The agency may make loans to finance affordable housing,
including residential structures, housing developments, multifamily
rental housing, special needs housing, and other forms of housing
permitted by this part.


51051.  The agency shall be a state representative for purposes of
receiving and allocating financial aid and contributions from
agencies of the federal government which are provided to the state or
to the agency for the purpose of subsidizing housing for persons and
families of low or moderate income and may utilize federal subsidies
available to it in providing housing for persons and families of low
or moderate income or for exercising any other of its powers. The
agency shall have priority among all other units of state government
for receipt of federal housing subsidies to the extent units financed
under this part are eligible for such assistance.



51053.  The agency may make and execute contracts with qualified
mortgage lenders for the initiation or servicing of mortgage loans,
construction loans, property improvement loans, or development loans
made or acquired by the agency pursuant to this part or for other
services rendered to the agency. The agency may pay the reasonable
value of services rendered to the agency pursuant to such contracts.




51054.  The agency may make or undertake commitments to make
development loans, construction loans, mortgage loans, and property
improvement loans to housing sponsors to finance housing
developments, as provided in Chapter 5 (commencing with Section
51100) of this part.
   The agency may, in conjunction with a construction loan, set aside
a reserve to provide improvement security required under subdivision
(c) of Section 66462 and Chapter 5 (commencing with Section 66499)
of Division 2 of Title 7 of the Government Code, which shall be in
lieu of improvement security otherwise required by such provisions.



51055.  The agency may purchase and sell construction loans,
mortgage loans, property improvement loans, obligations secured by
these loans, insurance on these loans, and participation therein.



51056.  Construction loans, mortgage loans, and property improvement
loans made, purchased, assigned or serving as security for
obligations or participations pursuant to this part shall be limited
as to charges, interest, maximum loan amount, which shall be
consistent with the purposes of this part.



51058.  (a) The agency may renegotiate, refinance, foreclose, or
contract for the foreclosure of, any mortgage in default and may
waive any default or consent to the modification of the terms of any
mortgage. With respect to housing developments, the agency shall
require that mortgage servicing and foreclosure practices, including
forbearance and recasting of mortgages in default, conform to agency
policies or resolutions.
   (b) The agency may commence any action to protect or enforce any
right conferred upon it by any law, mortgage, contract, or other
agreement and may bid for and purchase property sold in satisfaction
thereof at any foreclosure or other sale or may otherwise acquire and
take possession of that property. Subject to any agreement with
bondholders, the agency may operate, manage, lease, dispose of, and
otherwise deal with that property in such manner as may be necessary
to protect the interest of the agency and the holders of its bonds.




51058.5.  Notwithstanding any other provision of law, the agency is
not required to promulgate rules and regulations in order to
establish or operate a mortgage refinance program. Instead, that
program may be established by the governing board of the agency
through resolutions adopted by that board, and operated by the agency
in accordance with resolutions adopted by the board. Those
resolutions shall be exempt from the requirements of the
Administrative Procedures Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code).




51059.  The agency may procure insurance or coinsurance or
guarantees from the federal government or from any governmental
agency or instrumentality thereof, or from any private insurance
company, of the payment of principal, redemption price of, and
interest on any bonds issued by the agency. The agency may pay
premiums on any such insurance.



51060.  The agency may, for services performed, charge and collect
from housing sponsors and qualified mortgage lenders such fees and
charges for the purpose of defraying administrative and other
expenses as the agency may establish from time to time for its
lending and mortgage-purchase programs.



51061.  The agency may sell or convey real property owned by the
agency to persons and families of low or moderate income, nonprofit
housing sponsors, and local public entities. Such sale or conveyance
may be without consideration if the agency received the property upon
condition that it be so conveyed or sold and if such sale or
conveyance will inure primarily to the benefit of persons and
families of low or moderate income living in a housing development.



51062.  The agency shall establish criteria for housing sponsors and
qualified mortgage lenders, which shall be designed to assure the
financial integrity of programs authorized by this division and which
shall provide for effective implementation of the policies and
purposes set forth in this part. The criteria shall take into account
the differences between private and public institutions qualifying
as housing sponsors and qualified mortgage lenders.



51063.  Relocation payments shall be made to persons and families of
low or moderate income who are residents displaced because of
temporary or permanent displacement for rehabilitation work assisted
under this part, or rent increases resulting from rehabilitation,
pursuant to the Uniform Relocation and Real Property Acquisition
Policies Act of 1970 (42 U.S.C., Sec. 4601) or Chapter 16 (commencing
with Section 7260) of Division 7 of Title 1 of the Government Code.
Notwithstanding the provisions of this section, middle-income
families who decide against occupying the rehabilitated housing shall
not continue to receive relocation payments.
   The agency shall also insure that the relocation payments and the
relocation advisory assistance specified therein shall be provided.
Pursuant to the provisions of this section, the agency shall insure
relocation payments are provided to persons and families
involuntarily displaced in making a site or structure available for
rehabilitation or construction financed under this part, or in the
alternative may require the housing sponsor receiving a loan
commitment pursuant to this part to make such payments and provide
such assistance, whether such displacement has occurred in
anticipation of the loan commitment or will occur subsequent thereto.
   For purposes of this section, displacement includes relocation
occurring because of a qualified person or family's inability to pay
increased rentals resulting from rehabilitation, or involuntary
temporary or permanent displacement of a qualified person or family
to allow rehabilitation work to be done.



51064.  The agency shall establish maximum sale prices for the
initial sale of residential structures, the acquisition,
construction, or rehabilitation of which is financed by the agency in
anticipation of sale to persons and families of low or moderate
income. The agency shall also establish a price for any residential
structure whenever the buyer of such residential structure receives a
mortgage loan from the agency. The maximum sale prices established
by the agency pursuant to this section may provide a reasonable
profit to the seller while serving the purposes of this division.



51065.  The agency may make grants to nonprofit housing sponsors and
local public entities to meet expenses incurred in planning,
constructing, rehabilitating, or managing housing developments. The
agency may make grants to housing sponsors for the purpose of
lowering the rents on some or all of the units within a housing
development. Grants authorized by this section shall not be made with
proceeds from the sale of bonds.



51065.5.  The agency may make unsecured loans or loans secured by
assets other than real property to local public entities. The loans
may be funded by the proceeds of bonds or other agency funds to
assist local public entities in providing or making affordable
housing available to low- or moderate-income persons or families.




51066.  For housing developments financed by a mortgage loan from
the agency, the agency shall establish a grievance procedure or
require housing sponsors to establish a grievance procedure, or both,
for the purpose of resolving complaints by housing sponsors and
tenants of housing sponsors and contractual disputes between two or
more housing sponsors or between a housing sponsor and a tenant of
the housing sponsor. Notwithstanding any other provision of law, no
individual or family shall be evicted from a housing development
unless the following requirements are met:
   (a) The eviction is for good cause as defined by rules and
regulations of the agency.
   (b) Eviction proceedings shall be commenced by the giving of
notice as required by Section 1946 of the Civil Code or Section 1161
or 1161a of the Code of Civil Procedure and served as provided by
Section 1162 of the Code of Civil Procedure. The notice shall contain
a statement of the cause for eviction and of the right of the tenant
to a hearing and decision pursuant to regulations of the agency if a
request for such a hearing is made to the landlord in writing within
the period specified in Section 1946 of the Civil Code or Section
1161 of the Code of Civil Procedure, as the case may be.
   (c) When the tenant so requests the landlord in writing within the
period specified in Section 1946 of the Civil Code or Section 1161
of the Code of Civil Procedure, as the case may be, a hearing, in
accordance with procedures established pursuant to regulations of the
agency, shall be held by an impartial individual or panel selected
or approved by the agency and a decision rendered within two weeks
after receipt by the landlord of the tenant's written request for a
hearing. Good cause for eviction shall be established at the hearing
by the weight of the evidence. Before a right to a hearing vests, the
tenant shall pay rent for the two-week hearing period to the owner
or to an escrow account of the agency, if not already paid.
   A defendant in an unlawful detainer proceeding may assert as a
defense the failure of the plaintiff or the agency to comply with the
requirements of this section or regulations adopted pursuant to this
section. A defendant in an unlawful detainer proceeding may assert
as a defense that the findings at the hearing were not supported by
the weight of evidence.
   The costs of any hearing conducted pursuant to this section shall
be assessed to, and paid by, the losing party as provided in
regulations of the agency. If neither party prevails, the costs of
the hearing shall be equitably apportioned.
   As used in this section, "tenant" includes a resident shareholder
of a cooperative housing development. Nothing in this section shall
be construed as a limitation of the rights of a resident shareholder
of a cooperative housing development.



51067.  The agency shall adopt standards for the admission of
tenants, termination of tenancies, and eligibility of purchasers of
housing financed under this part as well as standards establishing
maximum percentages of income which a tenant or purchaser may
allocate to housing costs, which shall provide consideration for
proven ability in individual cases to pay what would otherwise be an
unusually high percentage of income for housing costs.



51068.  (a) Except as otherwise provided in subdivision (b) and
notwithstanding the provisions of Sections 711, 711.5, and 1916.5 of
the Civil Code, the agency shall not permit assumption of the
obligation of any mortgage loan made pursuant to Chapter 5
(commencing with Section 51100) by a subsequent ineligible purchaser
or transferee of the prior borrower. If the subsequent purchaser or
transferee does not meet the agency's eligibility requirements, the
agency shall require acceleration of repayment of the principal
balance of the loan to be all due and payable upon the sale or
transfer of the property.
   (b) With respect to mortgage loans made prior to July 1, 1979, the
agency may waive the requirements of subdivision (a) when necessary
to permit participation in mortgage insurance, guarantee, or purchase
programs, or when the provisions of subdivision (a) would interfere
with the financial structuring or the administration of any bond
financing program.
   (c) The requirements of subdivision (a) may be waived pursuant to
subdivision (b) with respect to any mortgage loan made on or after
July 1, 1979, only if the loan is federally assisted or insured and
the waiver is necessary to obtain the federal assistance or
insurance. As a condition to authorizing assumption of a mortgage
loan pursuant to this subdivision, the agency shall recast the
repayment schedule for the remainder of the term of the loan by
increasing the interest to the current market rate at the time of
assumption, or to any lower rate of interest which is the maximum
allowed by an entity that provided any insurance or other assistance
with respect to which a waiver was granted pursuant to this
subdivision. Any additional increment of interest produced by
increasing the rate of interest upon a mortgage loan pursuant to this
subdivision shall be transmitted or forwarded to the agency for
deposit in the California Housing Finance Fund.
   (d) The agency may also waive the requirements of subdivision (a)
if it determines that its application would result in undue hardship,
that the failure to meet the agency's eligibility requirements
resulted from circumstances beyond the mortgagor's control, and if
the waiver is for a limited period of time as specified by the
agency.
   (e) The agency shall implement appropriate measures to assure
compliance with this section.
   (f) This section applies to all mortgage loans made by the agency
pursuant to Chapter 5 (commencing with Section 51100), whether
directly or through a qualified mortgage lender, and including
mortgage loans made prior to September 22, 1979.



51069.  The agency, after approving an application for mutual
self-help housing, may make development loans and construction loans
for land acquisition and development costs to eligible housing
sponsors on terms and conditions and in amounts as it deems necessary
to accomplish the purposes of this part. These development loans and
construction loans may be interest free if sufficient surplus funds
exist for that purpose and the loans can be made without jeopardizing
the financial self-sufficiency of the agency or the adequacy of its
reserves. Land acquired and housing developments financed pursuant to
this section shall be sold or conveyed to eligible housing sponsors
or for the purpose of developing other mutual self-help housing.
   In making loans pursuant to this section, the agency, as an
alternative to disbursing the loans directly to eligible housing
sponsors or persons and families of low or moderate income, may
establish procedures retaining the loans or portions thereof, and
disburse those amounts directly to the person or entity performing a
service, or providing goods, material, land or improvements.




51070.  The agency shall require that qualified mortgage lenders do
not substitute funds made available under this part for the lenders'
own resources, without permission of the agency. Qualified mortgage
lenders may provide financing under this part until the agency makes
a finding that the lender is in violation of this section or
decertifies the lender pursuant to Section 50094.