(a) Loans from the Fund may be used for costs including, but not limited to, the following authorized expenses:
(1) All or a portion of the costs of purchasing rental housing developments;
(2) All or a portion of the costs of rehabilitating and otherwise upgrading the rental housing development to conform with applicable building or housing codes and to improve habitability and maintenance of the property, except:
(A) Purchase, installation, or repair of furnishings other than essential appliances;
(B) Materials, fixtures, or equipment of a type or quality which exceeds that customarily used for properties of the same general type to be rehabilitated.
(C) Administrative and overhead costs, except as provided in subparagraph (a)(13).
(3) The cost of room additions or enlargements, if the sponsor can document the need to eliminate overcrowding or unhealthy conditions.
(4) Costs of improvements related to making a unit accessible to and useable by the elderly or handicapped.
(5) The cost of architectural, engineering, and other professional services for the development of the project, including but not limited to the preparation of plans, drawings, and specifications for the rehabilitation of the property.
(6) The cost of building permits and related fees required for the rehabilitation.
(7) The cost of title reports, title insurance, appraisals and fees for recording documents related to the loan.
(8) The cost of repair and installation of energy conservation systems and weatherization when done in conjunction with other rehabilitation work.
(9) The cost of security and fire protection devices.
(10) Costs relating to displacement and temporary or permanent relocation of existing tenants of the rental housing development.
(11) Costs required by the Department related to review and approval of the loan.
(12) The cost of legal fees.
(13) The cost of a non-profit sponsor's overhead and administration directly related to program implementation may be included in a loan, provided the sponsor can demonstrate that such costs are necessary for the non-profit corporation to implement the project. Such costs shall not exceed 5 percent of the total loan amount, or $20,000, whichever is less.
(b) In buildings with mixed residential and commercial uses, loans from the Fund may be used for the cost of all items specified in subdivision (a) associated exclusively with the residential use. They may also be used for a share of the cost of such items that cannot specifically be allocated to either the residential or commercial uses; this share shall not exceed an amount in direct proportion to the ratio between the gross floor area of the residential use and the total gross floor area of the buildings. No loans from the Fund may be used for costs associated exclusively with commercial uses or with common elements, such as exterior facades, that are improved primarily for the benefit of the commercial use.
(c) No loans from the Fund may be used to refinance existing permanent financing.
Credits
Note: Authority cited: Section 50662, Health and Safety Code; Reference: Sections 50669-50670, Health and Safety Code.
