California Code of Regulations › Title 25 - Housing and Community Development › Division 1 - Housing and Community Development › Chapter 7 - Department of Housing and Community Development Programs › Subchapter 14 - California Housing Rehabilitation Program for Owner-Occupied Housing › Article 5 - Program Operations › Section 8062 - Default Reserve Subaccount

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The department shall establish an
					 owner-occupied housing default reserve subaccount in the account. The default
					 reserve subaccount shall be maintained at an amount equivalent to three percent
					 of the amount of encumbrances from the account for deferred payment loans made
					 pursuant to this subchapter.
(b)
					 The department may use amounts available in the default reserve subaccount for
					 the purpose of curing or avoiding a borrower's defaults on the terms of any
					 loan or other obligation which jeopardizes the department's security in
					 property securing the deferred payment loan. These defaults include defaults or
					 impending defaults in payments on mortgages, failures to pay taxes, failures to
					 maintain insurance, or any combination thereof.
(c) Where it becomes necessary to use monies
					 pursuant to this section to protect the department's security in a particular
					 borrower's property, the department shall take those actions necessary,
					 including, but not limited to, foreclosing or forced sale of the borrower's
					 property, to prevent similar occurrences and ensure compliance with the terms
					 of the applicable agreements.
1. New
						section filed 11-30-89 as an emergency; operative 11-30-89 (Register 89, No.
						49). A Certificate of Compliance must be transmitted to OAL within 120 days or
						emergency language will be repealed by operation of law on
						3-30-90.
2. New section refiled 3-26-90 as an emergency; operative
						3-30-90 (Register 90, No. 16). A Certificate of Compliance must be transmitted
						to OAL within 120 days or emergency language will be repealed by operation of
						law on 7-30-90.
3. New section filed 7-26-90 as an emergency;
						operative 7-26-90 (Register 90, No. 38). A Certificate of Compliance must be
						transmitted to OAL by 11-23-90 or emergency language will be repealed by
						operation of law on the following day.
4. Amendment of subsection
						(a) filed 8-27-90 as an emergency; operative 8-27-90 (Register 90, No. 42). A
						Certificate of Compliance must be transmitted to OAL by 12-26-90 or emergency
						language will be repealed by operation of law on the following
						day.
5. New section refiled 11-16-90 as an emergency; operative
						11-16-90 (Register 90, No. 51). A Certificate of Compliance must be transmitted
						to OAL by 3-18-91 or emergency language will be repealed by operation of law on
						the following day.
6. Readoption of 8-27-90 order filed 12-21-90 as
						an emergency; operative 12-21-90 (Register 91, No. 7). A Certificate of
						Compliance must be transmitted to OAL by 4-22-91 or emergency language will be
						repealed by operation of law on the following day.
7. Certificate of
						Compliance as to 11-30-89 order, readopted and operative on 3-30-90, 7-26-90
						and 11-16-90, including amendment of subsections (b) and (c) transmitted to OAL
						11-30-90 and filed 12-31-90 (Register 91, No.
						7).
Note: Authority cited: Section 50668.5(g), Health and
						  Safety Code. Reference: Section 50668.5(a), Health and Safety
						  Code.