Section 50755 Of Article 3. Contracts With Local Public Entities From California Health And Safety Code >> Division 31. >> Part 2. >> Chapter 9. >> Article 3.
50755
. The department may contract with local public entities to
provide funds to be used by those entities to obtain a right of
occupancy or leasehold for eligible households in some or all of the
units in a rental housing development. In order to maximize the
number of units for which a right of occupancy or leasehold is
obtained, the payment made by the local public entity in obtaining
the right or leasehold shall not exceed the costs of developing the
unit. The local public entity may be authorized by the department to
pay the entire amount of the development costs as soon as the unit is
available for occupancy.
Any contract executed pursuant to this article which provides for
a right of occupancy or leasehold in favor of a local public entity
shall be recorded or referenced in a recorded document in the office
of the county recorder of the county in which the real property is
located. The contract shall particularly describe the real property
subject to the right of occupancy or leasehold, designate the
specific rental units or proportion of the rental housing development
subject to the right of occupancy or leasehold, and specify the
period for which the right of occupancy or leasehold extends.