Section 7584 - Terms and Conditions of Development Assistance(a) As a condition of a commitment of development assistance funds, the following terms and conditions shall be incorporated into the MASA:(1) The amount, timing and manner of disbursement of development assistance funds by the Department;(2) A description and allocation of eligible costs to be paid by development assistance funds;(3) The timing of and manner by which the development assistance shall be provided to eligible households or cooperatives as mortgage assistance. The grantee shall be required to complete the project and provide mortgage assistance to eligible households within two years of the date of commitment of the development assistance; and(4) Remedies of the Department in the event that the grantee breaches, defaults or violates the development assistance provisions of the MASA.(5) The order of recordation and the priority to be accorded the Deed of Trust referred to in subdivision (b) below.(b) Development assistance for the project shall be provided in the form of a loan evidenced by a note in the amount of the approved development assistance and secured by a Deed of Trust in favor of the Department which shall be recorded as a lien against the property.(c) The note shall bear interest at ten percent (10%) per annum which interest shall be forgiven upon grantee's performance of the development assistance as specified in the MASA. Principal of the development assistance note shall be reduced in increments, and parcels released from the lien of the development assistance Deed of Trust, when mortgage assistance is provided to eligible households in accordance with the MASA.Cal. Code Regs. Tit. 25, § 7584
Note: Authority cited: Section 50697(d), Health and Safety Code. Reference: Section 50696, Health and Safety Code. 7670 Purpose and Scope.