§ 80425 Loan Repayment Waiver Conditions

Health and Safety Code·California

AI SummaryVerified

Key Takeaways

•If fixing up a property and buying it costs too much, the government might forgive up to 75% of the loan.
•The forgiven part of the loan becomes a grant (free money).
•You still have to pay back the remaining 25% of the loan within one year.

Example

You take a loan to buy and clean up an old, polluted factory to turn it into apartments. After checking, you find out it will cost way too much to fix the pollution and buy the property.

The government might say, 'Okay, you don’t have to pay back 75% of the loan.' So if you borrowed $100,000, you only have to pay back $25,000. But you must pay that $25,000 within one year.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 80425 Loan Repayment Waiver Conditions

If a loan recipient who is not the owner of the property and the department determine, after the completion of the preliminary endangerment assessment, that the sum of the cost of remediation and the property purchase price makes the redevelopment of the property not economically feasible, the department may waive the repayment of up to 75 percent of the loan, and the amount waived shall be deemed a grant to the loan recipient. If the department waives the repayment of part of the loan, the recipient shall repay the remaining portion of the loan within one year of that waiver. (Added by Stats. 2022, Ch. 257, Sec. 2. (AB 2293) Effective January 1, 2023. Operative January 1, 2024, pursuant to Sec. 4 of Stats. 2022, Ch. 257.)

Last verified: January 24, 2026

Key Terms

waiver property danger port cleanup repayment operative january completion

References

Official text at leginfo.legislature.ca.gov
California Legislature. Health and Safety Code. Section 80425.

§ 80425 Loan Repayment Waiver Conditions

Health and Safety Code·California

AI SummaryVerified

§ 80425 Loan Repayment Waiver Conditions

Key Takeaways

•If fixing up a property and buying it costs too much, the government might forgive up to 75% of the loan.
•The forgiven part of the loan becomes a grant (free money).
•You still have to pay back the remaining 25% of the loan within one year.

Example

You take a loan to buy and clean up an old, polluted factory to turn it into apartments. After checking, you find out it will cost way too much to fix the pollution and buy the property.

The government might say, 'Okay, you don’t have to pay back 75% of the loan.' So if you borrowed $100,000, you only have to pay back $25,000. But you must pay that $25,000 within one year.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 80425 Loan Repayment Waiver Conditions

Last verified: January 24, 2026

Key Terms

waiver property danger port cleanup repayment operative january completion

References

Official text at leginfo.legislature.ca.gov
California Legislature. Health and Safety Code. Section 80425.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References