(a)
The department may make loans from the fund to resident organizations for the purpose of financing mobilehome park conversion costs.
(b)
Loans provided pursuant to this section shall be for a term of no more than three years and shall bear interest at a rate of 3 percent per annum, unless the department finds that a lower interest rate is necessary and will not jeopardize the financial stability of the fund.
(c)
Loans provided pursuant to this section shall be for the minimum amount necessary to enable a resident organization to acquire and convert the mobilehome park. To the extent
possible, the loan amount shall not exceed 50 percent of the approved conversion costs. However, the loan amount may be for up to 95 percent of the approved conversion costs attributable to the low-income households in the park when approved by the department.
(d)
The department may grant approval to exceed 50 percent of the approved conversion costs only if both of the following are demonstrated:
(1)
That the applicant has made an effort to secure additional funds from other sources and these funds are not available.
(2)
That the project would not be feasible, as determined by the department, without a waiver of the 50-percent financing limitation.
(e)
The total secured debt in a superior position to the department’s loan plus the department’s loan shall not exceed the value of the collateral securing the loan.