Redevelopment funds: mortgage assistance.

The Community Redevelopment Law authorizes the establishment of redevelopment agencies in communities to address the effects of blight, as defined, in those communities and requires those agencies to prepare, or cause to be prepared, and approve a redevelopment plan for each project area. That law authorizes the agencies to use tax increment financing for redevelopment projects and repayment of redevelopment debts. This bill would redefine the term "redevelopment" to include the provision of loan assistance to qualified homeowners, until January 1, 2016, as determined by the agency. The bill would authorize a redevelopment agency to use redevelopment funds to issue a subordinate loan limited to low- and moderate-income borrowers and to owner-occupied homes, to reduce the principal balance on the home mortgages of qualified homeowners, as prescribed, who reside in or outside of the project area. The bill would authorize the use of funds outside the project area only upon a specified resolution of the agency and the legislative body. The bill would authorize the issuance of a subordinate loan only upon the agreement of the lender to reduce the principal balance of the primary loan so that the loan-to-value ratio is equal to or less than 110%. The bill would repeal this authorization on January 1, 2016.