Section 1481.2 - Affordable Price(a)Affordable Price Buyer. Only Occupants who meet the criteria described in § 1481(b)(1) or § 1482(b)(1) may purchase a Single-Family Residence at an Affordable Price. An Occupant who has purchased a property at an Affordable Price is an Affordable Price buyer.(b)One Property Limit. An Affordable Price buyer may not purchase more than one property pursuant to this chapter.(c)Calculating Affordable Price(1) "Affordable Price" is the greater of an Occupant's Calculated Affordable Price and the Minimum Sales Price for the property. If the greater of the Calculated Affordable Price and the Minimum Sales Price exceeds the Fair Market Value at Time of Purchase, then the Fair Market Value at Time of Purchase is the Affordable Price.(2) "Calculated Affordable Price" is the maximum price at which the Housing Cost to be paid by an Occupant would not exceed the Affordable Housing Cost for such buyer while applying the market interest rate over a fully amortized 30-year term. For Lower Income Households, the price for residential property shall not be greater than the amount that would result in the buyer's monthly payments exceeding that portion of the buyer's household adjusted income, as determined in accordance with the regulations of the United States Department of Housing and Urban Development issued pursuant to Section 8 of the United States Housing Act of 1937.(3) "Housing Cost" of an Occupant purchasing a Surplus Residential Property is calculated in accordance with the provisions of 25 Cal. Code Regs. § 6920.(4) "Affordable Housing Cost" is calculated in a manner consistent with the provisions of Health and Safety Code § 50052.5 as implemented by 25 Cal. Code Regs. § 6924. For purposes of this chapter, "Affordable Housing Cost" shall not exceed the following: (A) With respect to Lower Income Households, Housing Costs up to 25 percent of gross household income; or(B) With respect to Moderate Income Households, Housing Costs up to 30 percent of gross household income; or(C) With respect to Above-Moderate Income Households, Housing Costs up to 30 percent of gross household income.(d)Repairs.(1) The Department shall make the following repairs for properties sold at an Affordable Price: (A) Repairs necessary to meet the Minimum Property Standards specified in § 1481.3.(B) All reasonable lender required repairs identified pursuant to a written inspection report prepared in accordance with 16 Cal. Code Regs. § 1996.(2) Repairs required by this section shall not exceed the minimum repairs required by Government Code § 54237(b).(3) If the Department makes repairs pursuant to this section, then the Fair Market Value at Time of Purchase shall reflect the value of the property as repaired.(4) The Department may extend the time to close escrow to allow completion of the repairs described in (1).Cal. Code Regs. Tit. 21, § 1481.2
1. New section filed 12-13-2021 as an emergency; operative 12-13-2021 (Register 2021, No. 51). Pursuant to Government Code Section 54237.10, this is a statutorily deemed emergency and the emergency language remains in effect until 12-14-2023. A Certificate of Compliance must be transmitted to OAL by 12-13-2023 or emergency language will be repealed by operation of law on the following day.
2. Pursuant to Government Code section 54239.5(e)(3), as added by Senate Bill 959 (Stats. 2022, Ch. 668), a Certificate of Compliance must be transmitted to OAL by 9-30-2024 or language of the emergency order of 12-13-2021 (Register 2021, No. 51) will be repealed by operation of law on the following day (Register 2023, No. 27). Note: Authority cited: Section 54237, Government Code. Reference: Sections 54235, 54236, 54237 and 54237.7, Government Code; and Article XIX, California Constitution.
1. New section filed 12-13-2021 as an emergency; operative 12/13/2021 (Register 2021, No. 51). Pursuant to Government Code Section 54237.10, this is a statutorily deemed emergency and the emergency language remains in effect until 12-14-2023. A Certificate of Compliance must be transmitted to OAL by 12-13-2023 or emergency language will be repealed by operation of law on the following day.