California Water Code 13488 – (a) An eligible applicant for a loan shall meet all of the …
(a) An eligible applicant for a loan shall meet all of the following criteria:
(1) Have a household income at or below 120 percent of the statewide median household income or, for a small water system, serve households with a median household income at or below 120 percent of the statewide median household income.
Terms Used In California Water Code 13488
- Contract: A legal written agreement that becomes binding when signed.
- County: includes city and county. See California Water Code 14
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Small water system: means a system for the provision of piped water to the public for human consumption that serves at least two, but not more than 14, service connections and is not a public water system as defined in §. See California Water Code 13486.5
- State: means the State of California, unless applied to the different parts of the United States. See California Water Code 18
- State board: means the State Water Resources Control Board. See California Water Code 13050
(2) Have an ownership interest in the residence or small water system.
(3) Be unable to obtain financial assistance at reasonable terms and conditions from private lenders and lack the resources to undertake these improvements.
(4) Demonstrate an ability to repay the loan. This requirement may be satisfied by having another party join the application as a cosigner.
(b) Any loan provided shall be secured by appropriate collateral, which may include a mortgage on the residence and shall be repaid within 10 to 30 years in accordance with terms established by the state board. The interest rate on the loan shall not exceed 3 percent. Throughout the useful life of the improvement, a loan recipient shall furnish evidence of and continually maintain homeowner’s insurance on the security residence to protect the state‘s interest in the residence.
(c) The county may enter into a contract with a private financial institution to provide loans consistent with the purposes of this chapter.
(Added by Stats. 2017, Ch. 438, Sec. 1. (AB 277) Effective January 1, 2018.)