51205
. (a) The agency may institute any action or proceeding
pursuant to applicable provisions of law against any housing sponsor
receiving or assuming a loan under this part in any court of
competent jurisdiction in order to enforce this part or the terms and
provisions of any contract between the agency and the housing
sponsor, to foreclose its mortgage, or to otherwise protect the
public interest or the occupants of the housing development. Where
necessary to protect the interests of the agency, it may, in
connection with the action or proceeding, apply to the court for the
appointment of a receiver to take over, manage, operate, and maintain
the affairs of the housing sponsor of a rental or cooperative
housing development. No receiver shall be appointed unless approved
by the agency.
(b) (1) In the event of the reorganization of any housing sponsor,
to the extent permitted by law, that reorganization shall be subject
to the supervision and control of the agency. No reorganization of a
housing sponsor shall be effected without the prior written consent
of the agency.
(2) The agency may provide in its loan agreements that, in the
event of a judgment against any housing sponsor in any action to
which the agency is not a party, there shall be no sale of the
housing development or any portion thereof, except upon 60 days'
written notice to the agency. Upon receipt of notice, the agency or
Attorney General shall take steps that, in its judgment, are
necessary to protect the rights of all parties.
(c) Notwithstanding any other provisions of law, if, prior to
foreclosing on any collateral provided by a housing sponsor, the
agency institutes any judicial proceeding or takes any action against
a housing sponsor to enforce compliance with the obligations set out
in subdivision (d) or to collect or offset any sum owed the agency
as a result of any violation of any obligation set out in subdivision
(d), that remedy or action shall not constitute an action within the
meaning of subdivision (a) of Section 726 of the Code of Civil
Procedure, or in any way constitute a violation of the intent or
purposes of Section 726 of the Code of Civil Procedure, or constitute
a money judgment for a deficiency or a deficiency judgment within
the meaning of Section 580a, 580b, or 580d of, or subdivision (b) of
Section 726 of, the Code of Civil Procedure. However, the
above-referenced provisions of the Code of Civil Procedure shall
apply to any judicial proceeding instituted, or nonjudicial
foreclosure action taken, by the agency to collect the principal and
interest due on the mortgage loan with the housing sponsor.
(d) Subdivision (c) shall apply to the obligations of the housing
sponsor to do any or all of the following:
(1) Establish a schedule of rents, tenant standards and tenant
selection process, and terms of occupancy, and to provide bilingual
services and publications for tenants, pursuant to Section 51200.
(2) Permit the agency to inspect the premises, books, and records;
supervise the day-to-day operation and maintenance of the housing
financed by the agency, and to pay the fees to defray the cost
thereof, pursuant to subdivisions (a) to (d), inclusive, of Section
51201.
(3) Comply with the provisions of federal, state, or local laws
and ordinances, with the rules and regulations of the agency, or with
the terms of any contract with the agency, pursuant to subdivisions
(e) and (f) of Section 51201.
(4) Adhere to the limitation on earnings required by Section 51202
or by the agency's regulatory agreement, or both.
(5) Turn over managerial and financial control to the agency
pursuant to Section 51203.
(6) Properly certify development costs pursuant to Section 51204.
(7) Remit earned surplus to the agency as required by Section
51206.
(e) This section shall apply to housing sponsors, as defined in
Section 50074 and as used in Chapter 6.7 (commencing with Section
51325).
(f) Notwithstanding any other provision of law, the prevailing
party in any action instituted pursuant to this section shall be
awarded costs and reasonable attorney's fees, in an amount to be
determined in the court's discretion.
(g) As used in this section, "mortgage loan" shall be defined as
in Section 50086.