Section 7570 - Household Eligibility and Amount of Loans(a) Eligibility for participation with a commitment for mortgage assistance is limited to low-income households. This eligibility shall be determined at the time the sponsor gives final approval for a household's participation in the program, or on approval of permanent financing, whichever is earlier.(b) For new construction, the maximum deferred payment loan which an eligible household may receive shall be determined as follows:(1) Determine the amount of total financing required by subtracting from the sales price any downpayment or subsidies other than from the Department;(2) Calculate 30% of the eligible household's gross monthly income as established at the time permanent financing is approved. From this amount, subtract property taxes, insurance, and utilities and, if required, mortgage insurance and homeowner association fees, to determine the net income available for mortgage payment;(3) Using the interest rate and term of the first mortgage, calculate the mortgage that the net income in (2) will amortize.(4) Subtract the amount calculated in (3) from the fist mortgage calculated in (1). This amount, if positive, is the allowable mortgage assistance, up to a maximum of $15,000, for the eligible household.(c) An eligible household may receive a deferred amount loan for the rehabilitation of an assisted unit subject to the following conditions:(1) The after-rehabilitation loan-to-value ratio, including the Department's loan, shall not exceed 95 percent.(2) The proceeds of the deferred payment loan shall only finance rehabilitation costs directly related to compliance with local code rehabilitation standards.(3) The amount of the deferred payment loan shall not exceed the lesser of the following: (B) The amount needed to finance the direct cost of the approved rehabilitation work necessary to comply with rehabilitation standards.(4) Priority shall be given to eligible households spending 30 percent or more of their gross monthly income on housing costs. Households spending less than 25 percent of their gross monthly income for housing costs shall provide evidence that necessary financing cannot be obtained from other sources. "Gross monthly income" shall be established at the time the sponsor gives final approval for a household's participation in the program.Cal. Code Regs. Tit. 25, § 7570
Note: Authority cited: Section 50697(d), Health and Safety Code. Reference: Section 50696, Health and Safety Code.