(a) The department may make loans from the fund to a qualified nonprofit housing sponsor or a local public entity pursuant to subdivision (a) of Section 50783, provided the following conditions are satisfied:

(1) No less than 30 percent of residents at the time that the loan application is filed are low income.

(2) Loans may be provided pursuant to this section if either of the following applies:

(A) The park has significant outstanding violations of the Mobilehome Parks Act (Part 2.1 (commencing with Section 18200)) that threaten the long-term viability of the park and that will be remedied by the purchaser.

(B) The department determines that the loan will have a substantial benefit to low- and moderate-income homeowners and that the nonprofit housing sponsor or local public entity agrees to maintain rents at levels affordable to lower income households.

(b)  If a resident organization, qualified nonprofit housing sponsor, or local public entity purchased a mobilehome park in advance of the availability of funds in order to maintain affordability of rents the cost of the purchase may be reimbursed, provided an application for funds is submitted within a timeframe deemed reasonable by the department, as further specified in the guidelines or notice of funding availability.

(c) If a resident organization, qualified nonprofit housing sponsor, or local public entity expended funds to address health and safety issues in advance of the availability of funds, the costs may be reimbursed, provided the costs would otherwise have been eligible costs under this chapter and an application for funds is submitted within a timeframe determined reasonable by the department, as further specified in the guidelines or request of notice of funding availability.

(d) All of the following shall apply to loans provided pursuant to this section:

(1)  Loan amounts shall be for up to 95 percent of the costs attributable to the low-income spaces.

(2)  Funds shall not be used to assist residents who are not of low income or to reduce monthly housing costs for low-income residents to less than 30 percent of their monthly income.

(e) In determining the eligibility for and amount of loans pursuant to this section, the department shall take into consideration, among other factors, all of the following:

(1) The current health and safety conditions in the park and the likelihood that conditions would be remedied without the loan.

(2) The degree to which the loan will benefit lower income homeowners.

(3) The age of the park and the age of the infrastructure that will be rehabilitated with the loan proceeds.

(f) Before providing financing pursuant to this section, the department shall require provision of, and approve, at least all of the following:

(1) Verification that either no park residents shall be involuntarily displaced as a result of the purchase or that the impacts of the displacement shall be mitigated as required under state and local law. For purposes of this requirement, compliance with § 66427.5 of the Government Code shall be conclusively presumed to have mitigated economic displacement.

(2) Projected costs and sources of funds for all purchase and rehabilitation activities.

(3) Projected operating budget for the park after the purchase.

(4) A management plan for the operation of the park.

(Amended by Stats. 2022, Ch. 70, Sec. 29. (SB 197) Effective June 30, 2022.)