Cal. Code Regs. tit. 25 § 7904

Current through Register 2024 Notice Reg. No. 50, December 13, 2024

Section 7904 - Eligible Use of Funds

The Department shall provide financial assistance from the Fund, either directly or through a mortgage lender, to enable eligible recipients to purchase or develop property as provided in this section.

(a) Financial assistance may be used for the following purposes:

(1) to enable an eligible household, which has occupied for at least 120 days prior to the date of submission of an application under Section 7916 a rental unit being converted, to purchase the unit it has occupied or another rental unit in the same rental housing development being converted, provided that such other rental unit is not being purchased by its occupant(s), or to purchase a share in a cooperative corporation which entitles the holder to occupy a converted rental unit;

(2) to enable an eligible household to purchase a mobilehome affixed to a permanent foundation, not located or to be located in a mobilehome park;

(3) to enable, on an interim basis, a nonprofit corporation to develop or purchase a mobilehome park where, within a reasonable time thereafter, ownership of the mobilehome park will have been transferred to it occupants, either as individual owners or a shareholders in a cooperative corporation which owns the mobilehome park or;

(4) to enable an eligible household to purchase a share in a cooperative corporation which entitles the holder to reside in a mobilehome park.

(b) In no event shall financial assistance provided under the Program exceed forty- nine (49) percent of the purchase price of the property. The remaining fifty-one (51) percent of the purchase price shall consist of a loan secured by the recipient through a mortgage lender certified under the Program and any required downpayment. With regard to the purchase or development of a mobilehome park, financial assistance shall not exceed forty-nine (49) percent of the purchase price or development costs which can be attributed to the number or ratio of eligible households who will occupy the park.

(c) Where State financial assistance will be used in conjunction with a Federal housing assistance program and a conflict exist between State and Federal program requirements, the requirements of the State Homeownership Assistance Program regulations may be waived only to the extent necessary to permit Federal participation, provided that such a waiver does not conflict with any State legal requirements.

(d) The Department may require that a specified percentage of the total units in a proposed development be pre-sold without state financial assistance at prices at least equal to the prices of units to be purchased with state financial assistance.

(e) Not less than fifty (50) percent of the monies in the Fund shall be used to assist lower income households as defined in Title 25, California Administrative Code, Section 6928.

(f) Not less than twenty (20) percent of the dwelling units assisted under this Program shall be located in rural areas.

Cal. Code Regs. Tit. 25, § 7904

1. Amendment filed 11-13-80 as an emergency; effective upon filing (Register 80, No. 46). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 3-13-81.
2. Certificate of Compliance including amendment transmitted to OAL 3-13-81 and file 4-14-81 (Register 81, No.16).
3. Amendment filed 6-11-81 as an emergency; effective upon filing (Register 81, No. 25).
4. Order of Repeal of 6-11-81 emergency order filed 6-19-81 by OAL pursuant to Government Code Section 11349.6 (Register 81, No. 25).

Note: Authority cited: Sections 50406, 50775, 50777, and 50778 Health and Safety Code. Reference: Sections 50775, 50776, 50777, and 50778, Health and Safety Code.