The Capital Access Loan Program.

Existing law establishes within the Capital Access Loan Program the California Americans with Disabilities Act Small Business Capitol Access Loan Program to assist small businesses in complying with the federal Americans with Disabilities Act of 1990, and the California Seismic Safety Capital Access Loan Program to assist qualified residential property owners and qualified small business owners in seismically retrofitting qualified buildings by covering losses on qualified loans for those purposes. Existing law requires the California Pollution Control Financing Authority to administer both programs, including adopting regulations and holding funds received for the programs, as specified. Existing law defines the term "qualified residential property owner" for purposes of the seismic retrofitting program to mean an owner of, or a qualified small business that owns, a residential building that is a qualified building, as specified. Existing law defines the term "loss reserve account" for purposes of both programs as an account established and maintained by the authority for the benefit of a financial institution participating in the Capital Access Loan Program from which, among other things, the authority's contributions for each enrolled loan are recaptured upon the maturation of the loan or after a period of years, as specified, from the date of enrollment and applied to future program and administrative expenditures. Existing law establishes the California American with Disabilities Act Small Business Capital Access Loan Program Fund and the California Seismic Safety Capital Access Loan Program Fund, both of which are continuously appropriated to the authority to carry out the purposes of these programs. This bill would expand the definition of a "qualified residential property owner" for purposes of the seismic retrofitting program to include a homeowners' association that owns a residential building that is a qualified building, and is authorized to seismically retrofit such a building. The bill would also authorize moneys in the California Seismic Safety Capitol Access Loan Program Fund to be used by the authority for incentives to borrowers. By expanding the purposes of a continuously appropriated fund, the bill would make an appropriation. The bill would clarify that the authority is required to contribute to, and to establish a minimum threshold for, the loss reserve account it creates for each lender that enrolls loans in either the California Americans with Disabilities Act Small Business Capital Access Loan Program or the California Seismic Safety Capital Access Loan Program. The bill also would make other conforming changes.