Section 129051 Of Article 2. Insurable Loans And Applications Therefor From California Health And Safety Code >> Division 107. >> Part 6. >> Chapter 1. >> Article 2.

. (a) The office shall develop and implement a system for assessing the relative financial risk of the applicant. The system shall include, but is not limited to, an assessment of the applicant' s financial strength, credit history, security for the loan, cash-flow, and ability to repay the debt.
  (b) The office shall establish a maximum acceptable level of financial risk for the projects it insures. The office may only approve a project if its risk level is below the established maximum, except as provided in subdivision (c).
  (c) The office may approve a project with a level of insurance risk that exceeds the established maximum if the office determines that the project meets a significant community need or will be a sole community provider.