CA AB2731

Amends Health and Safety Code Section 32127.3 to expand the purposes for which health care district boards may borrow money and issue bonds to include federal loans or grants issued under the Consolidated Farm and Rural Development Act (7 U.S.C. Sec. 1921, et seq.), in addition to existing National Housing Act financing.

Authorizes health care district boards to execute first mortgages, first deeds of trust, or other security interests to secure federal loans, grants, or guaranteed loans for financing or refinancing construction, expansion, modernization, renovation, or remodeling of health facilities.

Prohibits payments of principal, interest, insurance premiums, inspection fees, and other financing costs from funds derived from the district's taxing power.

Declares that federal government enforcement of mortgages and security interests serves the public interest by promoting health, welfare, and safety while stimulating private capital flow into health facility construction without state cost.