Bill Text: CA AB835 | 2013-2014 | Regular Session | Amended

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Bill Title: Child care: facilities: loans.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Engrossed - Dead) 2013-06-27 - Read second time and amended. Re-referred to Com. on APPR. [AB835 Detail]

Download: California-2013-AB835-Amended.html

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BILL NUMBER: AB 835	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 27, 2013
	AMENDED IN ASSEMBLY  MARCH 14, 2013

INTRODUCED BY   Assembly Member Muratsuchi

                        FEBRUARY 21, 2013

   An act to add Section 8277.63 to the Education Code, relating to
child care.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 835, as amended, Muratsuchi. Child care: facilities: loans.
   Existing law, until funding was repealed, authorized the
Department of Housing and Community Development to use moneys from a
specified fund for the purpose of making subordinated loans to
certain entities for the purchase, development, construction,
expansion, or improvement of licensed child care and development
facilities. Similarly, until that funding was repealed, the
department was required to adopt regulations to implement a
microenterprise loan program where loans were available from that
fund to local microenterprise loan funds and other lenders who are
authorized to relend the moneys to eligible small and large family
day care providers, and licensed child care and development
facilities that serve up to 35 children.
   This bill would authorize the department,  with the
agreement   upon the request  of the borrower, to
 amend   modify  the terms of a loan made
pursuant to the authorizations described above  if the department
determines that the borrower has demonstrated hardship, subject to
compliance with specified requirements  .
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 8277.63 is added to the Education Code, to
read: 
   8277.63.  The Department of Housing and Community Development,
with the agreement of the borrower, may amend the terms of a loan
entered into pursuant to Section 8277.5 or 8277.6.  
   8277.63.  (a) For purposes of this section, "department" means the
Department of Housing and Community Development.
   (b) Upon request from a borrower, the department may, in its
discretion, modify the terms of a loan entered into pursuant to
Section 8277.5 or 8277.6, if the department determines that the
borrower has demonstrated hardship. Any modification approved by the
department shall comply with all of the following:
   (1) The principal amount of the loan shall not increase.
   (2) The principal amount of the loan shall not decrease below the
current appraised value of the property as provided by a licensed or
certified appraiser.
   (3) The monthly payment due from the borrower shall decrease.
   (c) The department may agree to allow a modified loan described in
subdivision (b) to become subordinate to another loan under terms
and conditions the department deems reasonable.