Statute · California Health and Safety Code
Cal. Health & Safety Code § 50771.2 — Program Requirements
Cal. Health & Safety Code § 50771.2
- Type
- Statute
- Source
- California Health and Safety Code
- Jurisdiction
- California
- Date
- 1988-03-14
- Current through
- Nov 2, 2026 (California Legislative Counsel)
(a) As an alternative to the loan provisions of paragraph (2) of subdivision (b) of Section 50771.1 and the regulatory agreement provisions of subdivision (d) of Section 50771.1, the department may permit the prepayment of a sponsor’s loan anytime on the basis of net cash flow.
Citator
Cal. Health & Safety Code § 50771.2 — Program Requirements is in force in the current edition of the Code, and nothing recorded condemns it.
(a) As an alternative to the loan provisions of paragraph (2) of subdivision (b) of Section 50771.1 and the regulatory agreement provisions of subdivision (d) of Section 50771.1, the department may permit the prepayment of a sponsor’s loan anytime on the basis of net cash flow.
(b) The department shall develop a prepayment plan in conjunction with the sponsor which will ensure the maintenance of affordable rents and the fiscal integrity of the rental housing development. As an incentive to encourage the prepayment of loans, the department may permit the sponsor to retain one-half of the net cash flow. The department shall determine the method for calculating net cash flow, which may include a factor for excess debt service coverage or a return on cash investment to the sponsor.