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<ns0:Id>20250AB__260798AMD</ns0:Id>
<ns0:VersionNum>98</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2026-03-09</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:MeasureType>AB</ns0:MeasureType>
<ns0:MeasureNum>2607</ns0:MeasureNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Nguyen</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Nguyen</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title>An act to amend Sections 44559.13 and 44559.14 of the Health and Safety Code, relating to economic development, and making an appropriation therefor. </ns0:Title>
<ns0:RelatingClause>economic development, and making an appropriation therefor</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>California Americans with Disabilities Act Small Business Capital Access Loan Program.</ns0:Subject>
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<ns0:DigestText>
<html:p>Existing law establishes the California Americans with Disabilities Act Small Business Capital Access Loan Program to assist small businesses in complying with the Americans with Disabilities Act. Existing law requires the Capital Programs and Climate Financing Authority to adopt regulations to establish and regulate new loss reserve accounts for qualified loans made by participating lenders to small businesses for eligible products, as specified, including regulations limiting terms of loans and recaptures from loss reserve accounts to 5 years, as specified. Existing law caps qualified loans under the program at $50,000. Existing law establishes the California Americans with Disabilities Act Small Business Capital Access Loan Program Fund, a continuously appropriated fund to be administered by the
authority for the purposes of the program. Existing law prescribes the uses for moneys in the fund, including specified program and administrative expenditures, and limits administrative expenditures to 5% of the initial appropriation plus 5% of all moneys recaptured.</html:p>
<html:p>Existing law establishes the California Seismic Safety Capital Access Loan Program, which is similar to the California Americans with Disabilities Act Small Business Capital Access Loan Program, to assist residential property owners with and small business owners seismically retrofitting residences and small businesses, as specified. Existing law establishes the California Seismic Safety Capital Access Loan Program Fund, a continuously appropriated fund to be used for the purposes of the program, as specified.</html:p>
<html:p>This bill would increase the cap for qualified loans under the California Americans with Disabilities Act Small Business Capital Access Loan Program to
$250,000. The bill would, as of the operative date of the bill, require the authority to transfer the moneys from the California Seismic Safety Capital Access Loan Program Fund to the California Americans with Disabilities Act Small Business Capital Access Loan Program Fund. The bill would provide that moneys in the California Americans with Disabilities Act Small Business Capital Access Loan Program Fund may additionally be used for financial assistance to eligible projects, as specified. The bill would change the limit for administrative expenditures from the California Americans with Disabilities Act Small Business Capital Access Loan Program Fund to 5% of the initial appropriation plus 5% of all interest earned and moneys recaptured. The bill would require the regulations adopted for the California Americans with Disabilities Act Small Business Capital Access Loan Program to increase the 5-year term and recapture limits described above to 15 years. By transferring money into a continuously appropriated
fund, expanding the purposes for which moneys in a continuously appropriated fund may be used, and increasing the amount of moneys that may be expended from a continuously appropriated fund, this bill would make an appropriation.</html:p>
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<ns0:VoteRequired>TWO_THIRDS</ns0:VoteRequired>
<ns0:Appropriation>YES</ns0:Appropriation>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_E22DE900-2113-4EC1-B478-83E6EAC9596F">
<ns0:Num>SECTION 1.</ns0:Num>
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Section 44559.13 of the
<ns0:DocName>Health and Safety Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_0B428967-40A0-4151-AFD8-AE2BA4F379B9">
<ns0:Num>44559.13.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
It is the intent of the Legislature in this act to create and fund the California Americans with Disabilities Act Small Business Capital Access Loan Program to assist small businesses in complying with the Americans with Disabilities Act. It is not the intent of the Legislature to assist the physical expansion of small businesses that includes modifications that comply with the Americans with Disabilities Act. The program shall be administered by the Capital Programs and Climate Financing Authority and follow the terms and conditions for the Capital Access Loan Program for Small Businesses in this article with the additional program requirements specified under this section.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of this section, unless the context requires otherwise, the
following words and terms shall have the following meanings:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Americans with Disabilities Act” means the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.) and amendments thereto.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“California Americans with Disabilities Act Small Business Capital Access Loan Program Fund” or “fund” means a fund established and administered by the authority pursuant to Sections 44548 and 44549 to be used for purposes of this program.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
“Eligible cost” means and includes all or any part of the price of construction, purchase price of real or personal property, the price of demolishing or removing any buildings or structures, the price of all machinery and equipment, the amount of financing charges and interest before, during, and for a period not to exceed the later of one
year or one year following completion of construction, as determined by the authority, the price of insurance during construction, the amount of funding or financing noncapital expenses, the amount of reserves for principal and interest and for extensions, enlargements, additions, replacements, renovations, and improvements, the price of engineering, financial, and legal services and other service contracts, the price of plans, specifications, studies, surveys, estimates, administrative expenses, and any other expenses of funding or financing, that are necessary and allocable to the eligible project.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
“Eligible cost” shall not include costs not directly related to physical alterations necessary for compliance with the Americans with Disabilities Act.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
“Eligible project” means the physical alterations or retrofits to an existing small business facility of less than 10,000
square feet necessary to ensure that facility is in compliance with the Americans with Disabilities Act, and the financing necessary to pay eligible costs of the project.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
“Qualified loan” means a loan or portion of a loan as defined in subdivision (j) of Section 44559.1, where the proceeds of the loan or portion of the loan are limited to the eligible costs for an eligible project under this program, and where the loan or portion of the loan does not exceed two hundred fifty thousand dollars ($250,000).
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
“Small business” or “qualified business” means a business that is independently owned and operated and not dominant in its field that meets both of the following additional criteria:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
It has 30 or fewer full-time equivalent employees, or it has less than five million dollars ($5,000,000) in total gross annual income from all sources.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
It does not provide overnight accommodations.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The California Americans with Disabilities Act Small Business Capital Access Loan Program Fund is established in the State Treasury for, and shall be administered by the authority pursuant to Sections 44548 and 44549 for, this program.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Notwithstanding Section 13340 of the Government Code, all money in the fund is continuously appropriated to the authority for carrying out the purposes of this section.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The authority may divide the fund into separate accounts.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
All moneys accruing to the authority pursuant to this section from any source shall be deposited into the fund.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Moneys in the fund include the moneys transferred from the California Seismic Safety Capital Access Loan Program Fund pursuant to paragraph (4) of subdivision (c) of Section 44559.14.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
All moneys in the fund derived from any source shall be held in trust for the life of this program, subject to the program expenditures and costs of administering this section, as follows:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Program expenditures shall include all of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Contributions paid by the authority in support of qualified loans.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Payments made to borrowers enrolling loans to participate in the program, to the extent that moneys other than the initial appropriation are deposited into the fund by the authority and are authorized for that use pursuant to paragraph (3) of subdivision (d).
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Reasonable costs to educate the small business community and participating lenders about the program, including travel within the state.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
Financial assistance to eligible projects, including, but not limited to, loans, loan loss reserves, interest rate reductions, contributions of money, or a combination thereof, as determined and approved by resolution of the authority.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Administrative expenditures shall be limited to 5 percent of the initial appropriation plus 5 percent of all interest earned and moneys recaptured, and shall include all of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Personnel costs.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Service and vending contracts necessary to carry out the program.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Other reasonable direct and indirect administrative costs.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The authority may direct the Treasurer to invest moneys in the fund that are not required for its current needs in the eligible securities specified in Section 16430 of the Government Code as the authority shall designate. The authority may
direct the Treasurer to deposit moneys in interest-bearing accounts in state or national banks or other financial institutions having principal offices located in the state. The authority may alternatively require the transfer of moneys in the fund to the Surplus Money Investment Fund for investment pursuant to Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of Division 4 of Title 2 of the Government Code. All interest or other increment resulting from an investment or deposit shall be deposited into the fund, notwithstanding Section 16305.7 of the Government Code. Moneys in the fund shall not be subject to transfer to any other fund pursuant to any provision of Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code, excepting the Surplus Money Investment Fund.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The authority shall adopt regulations pursuant to subdivision (c) of Section 44520 to implement the program, including provisions
specific to this program as described in this section and further including provisions to:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Establish a new loss reserve account for each participating lender enrolling loans in this program.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Obtain a certification from each participating lender and small business upon enrollment of a qualified loan that the proceeds of the loan will be used for the eligible costs of an eligible project.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Contribute an additional incentive from the fund for each loan enrolled for a qualified business located in a severely affected community, or make nonreimbursable payments from other moneys to participating borrowers to offset all or a portion of the reasonable costs of architectural inspections obtained from a person who is certified as an access specialist pursuant to the program described in Section 4459.5 of the
Government Code.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Restrict the enrollment of a qualified loan in any other Capital Access Loan Program for small business offered by the authority as long as funds are available for this program.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Limit the term of loss coverage for each qualified loan to no more than 15 years.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Recapture from the loss reserve account the authority’s contribution for each enrolled loan upon the maturation of such loan or after 15 years from the date of enrollment, whichever happens first, to be deposited in the fund and applied to future program and administrative expenditures.
</html:p>
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<ns0:BillSection id="id_075A9E92-4740-4988-9FCC-59E5725314DA">
<ns0:Num>SEC. 2.</ns0:Num>
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Section 44559.14 of the
<ns0:DocName>Health and Safety Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_57E49779-DBE2-4C64-BA47-F05DC1115031">
<ns0:Num>44559.14.</ns0:Num>
<ns0:LawSectionVersion id="id_C08A9C93-D323-424F-B5F4-996C759EDB22">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
It is the intent of the Legislature in enacting the act adding this section to create and fund a program to assist residential property owners and small business owners in seismically retrofitting residences and small businesses with a priority on soft-story buildings and unreinforced brick and concrete buildings. It is not the intent of the Legislature to assist the physical expansion of small businesses and residences.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The Legislature hereby establishes the California Seismic Safety Capital Access Loan Program. The program shall cover losses on qualified loans by participating lenders to qualified residential property owners or qualified small businesses for eligible projects, as specified under this section. The program
shall be administered by the Capital Programs and Climate Financing Authority and follow the terms and conditions for the Capital Access Loan Program in this article with the additional program requirements specified under this section.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of this section, unless the context requires otherwise, the following words and terms shall have the following meanings:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Seismic retrofit construction” means alteration performed on or after January 1, 2017, of a qualified building or its components to substantially mitigate seismic damage. “Seismic retrofit construction” includes, but is not limited to, all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Anchoring the structure to the foundation.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Bracing cripple walls.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Bracing hot water heaters.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Installing automatic gas shutoff valves.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Repairing or reinforcing the foundation to improve the integrity of the foundation against seismic damage.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
Anchoring fuel storage.
</html:p>
<html:p>
(G)
<html:span class="EnSpace"/>
Installing an earthquake-resistant bracing system for mobilehomes that are registered with the Department of Housing and Community Development.
</html:p>
<html:p>
(H)
<html:span class="EnSpace"/>
Strengthening a building’s lateral load resisting system.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Eligible costs” means the costs paid or incurred on or after January 1, 2017, for an eligible project, including any engineering or architectural design work necessary to permit or complete
the eligible project less the amount of any grant provided by a public entity for the eligible project. “Eligible costs” do not include costs paid or incurred for any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Maintenance, including abatement of deferred or inadequate maintenance, and correction of violations unrelated to the seismic retrofit construction.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Repair, including repair of earthquake damage.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Seismic retrofit construction required by local building codes as a result of addition, repair, building relocation, or change of use or occupancy.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Other work or improvement required by local building or planning codes as a result of the intended seismic retrofit construction.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Rent reductions or
other associated compensation, compliance actions, or other related coordination involving the qualified residential property owner or qualified small business and any other party, including a tenant, insurer, or lender.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
Replacement of existing building components, including equipment, except as needed to complete the seismic retrofit construction.
</html:p>
<html:p>
(G)
<html:span class="EnSpace"/>
Bracing or securing nonpermanent building contents.
</html:p>
<html:p>
(H)
<html:span class="EnSpace"/>
The offset of costs, reimbursements, or other costs transferred from the qualified residential property owner or qualified small business to others.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Eligible project” means seismic retrofit construction that is necessary to ensure that the qualified building is capable of substantially mitigating seismic damage, and the financing necessary
to pay eligible costs of the project.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
“Qualified building” means a residential or commercial building that is identified by the local building code official for the jurisdiction in which the building is located as a building in need of seismic retrofitting and is either a building of a type that is potentially vulnerable in the event of a catastrophic earthquake or a building constructed before 1981.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
“Qualified loan” means a loan or portion of a loan as defined in subdivision (j) of Section 44559.1, where the proceeds of the loan or portion of the loan are limited to the eligible costs for an eligible project under this program, and where the loan or portion of the loan does not exceed two hundred fifty thousand dollars ($250,000).
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
“Qualified small business” means a business referred to in subdivisions
(i) and (m) of Section 44559.1 that owns a qualified building regardless of owner occupancy, notwithstanding the restriction on passive real estate ownership in subparagraph (B) of paragraph (2) of subdivision (j) of Section 44559.1.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
“Qualified residential property owner” means either an owner of a residential building that is a qualified building or a qualified small business that owns one or more residential buildings, including a multiunit housing building, that is a qualified building, notwithstanding the restriction on passive real estate ownership in subparagraph (B) of paragraph (2) of subdivision (j) of Section 44559.1.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The California Seismic Safety Capital Access Loan Program Fund is established in the State Treasury and shall be administered by the authority pursuant to Sections 44548 and 44549 for this program. For purposes of this
section, the references in Sections 44548 and 44549 to “small business” shall include “qualified residential property owner,” as defined in this section. Notwithstanding Section 13340 of the Government Code, all moneys in the fund are continuously appropriated to the authority for carrying out this section. The authority may divide the fund into separate accounts. All moneys accruing to the authority pursuant to this section from any source shall be deposited into the fund.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Subject to paragraph (4), all moneys in the fund derived from any source shall be held in trust for the life of this program, for program expenditures and costs of administering this section, as follows:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Program expenditures shall include both of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Contributions paid by the authority in support of qualified loans.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Costs for a qualified expert to validate that the proceeds of the loans are eligible costs, as defined under this section.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Reasonable costs to educate the small business community, residential property owners, and participating lenders about the program, including travel within the state.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Administrative expenditures shall be limited to 5 percent of the initial appropriation plus 5 percent of all moneys recaptured, and shall include all of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Personnel costs.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Service and vending contracts, other than program expenditures described in subparagraph (A), that are necessary to carry out the program.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Other reasonable direct and indirect administrative costs.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The authority may direct the Treasurer to invest moneys in the fund that are not required for its current needs in the eligible securities specified in Section 16430 of the Government Code as the authority shall designate. The authority may direct the Treasurer to deposit moneys in interest-bearing accounts in state or national banks or other financial institutions having principal offices located in the state. The authority may alternatively require the transfer of moneys in the fund to the Surplus Money Investment Fund for investment pursuant to Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of
Division 4 of Title 2 of the Government Code. All interest or other increment resulting from an investment or deposit shall be deposited into the fund, notwithstanding Section 16305.7 of the Government Code. Moneys in the fund shall not be subject to transfer to any other fund pursuant to any provision of Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code, excepting the Surplus Money Investment Fund.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Notwithstanding any other law, on the operative date of the act adding this paragraph, the authority shall transfer the moneys in the fund to the California Americans with Disabilities Act Small Business Capital Access Loan Program Fund established pursuant to Section 44559.13.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The authority shall adopt regulations pursuant to Section
44520 to implement the program, including, but not limited to, provisions to:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Establish a new loss reserve account for each participating lender enrolling loans in this program.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Obtain a certification from each participating lender and qualified small business or qualified residential property owner upon enrollment of a qualified loan that the proceeds of the loan will be used for the eligible costs of an eligible project.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Contribute an additional incentive from the fund for each loan enrolled for a qualified small business or qualified residential property owner located in a severely affected community.
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(4)
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Restrict the enrollment of a qualified loan in any other Capital Access Loan Program for a qualified small business or qualified
residential property owner offered by the authority as long as funds are available for this program.
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(5)
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Limit the term of loss coverage for each qualified loan to no more than 10 years.
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(6)
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Recapture from the loss reserve account the authority’s contribution for each enrolled loan upon the maturation of that loan or after 10 years from the date of enrollment, whichever happens first, to be deposited in the fund and applied to future program and administrative expenditures.
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(e)
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The authority may adopt regulations relating to residential property owner or small business financing as emergency regulations in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. For purposes of that Chapter 3.5, including Section 11349.6 of the Government Code, the
adoption of the regulations shall be considered by the Office of Administrative Law to be necessary for the immediate preservation of the public peace, health and safety, and general welfare. The regulations shall be repealed 180 days after their effective date, unless the adopting authority or agency complies with that Chapter 3.5.
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