Moneys in the fund shall be used for the following purposes:
(a) Loans to local agencies that meet all of the following requirements:
(1) Are made at or below market interest rates.
(2) Require annual payments of principal and any interest, with repayment commencing not later than one year after loan funding and full amortization not later than 20 years after loan funding. Full amortization for loans to disadvantaged communities shall be not later than 25 years after loan funding.
(3) Require the loan recipient to establish an acceptable dedicated source of revenue for repayment of a loan.
(b) To guarantee, or purchase insurance for, local obligations if that action would improve credit market access or reduce interest rates.
(c) As a source of revenue or security for the payment of principal and interest on revenue or general obligation bonds issued by the state, if the proceeds of the sale of those bonds will be deposited in the fund.
(d) To earn interest.
(e) Technical assistance.
(f) For payment of the department’s reasonable costs of administering the fund, not to exceed 4 percent of the fund.
(g) Grants, principal forgiveness, negative interest rates, and any other type of, or variation on, the types of assistance described in this section that is authorized by a federal capitalization grant deposited in the fund to the extent authorized and funded by that federal capitalization grant.
(Added by Stats. 2014, Ch. 825, Sec. 2. (AB 2636) Effective January 1, 2015.)
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