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 3 - Farmworker Housing Grant Program › Article 4 - Program Operations › Section 7226 - Grant Agreement

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) In order to close a grant, a grantee is
					 required to execute a Grant Agreement with the Department.
(b) The Grant Agreement shall be in a form
					 determined by the Department and shall contain, but not be limited to, the
					 following conditions:
(1) Assisted Units. It
					 shall specify the minimum number of units of the housing development which have
					 been designated as assisted units subject to program occupancy and resale
					 restrictions.
(2) Recordation. It
					 shall require the grantee to cause the Grant Agreement to be recorded in the
					 Official Records of the county in which the housing development is or will be
					 situated.
(3) Lien. The Grant
					 Agreement shall be recorded as a lien on the real property of the housing
					 development, or the title of a manufactured home not on a permanent foundation,
					 in favor of the Department for the purpose of securing performance of the
					 conditions of the Grant Agreement. The lien shall endure for the duration of
					 the Grant Agreement and shall be subject to the provisions of Section
					 7230.
(4) Duration. It shall state
					 that it is binding on the grantee for a term of fifty-five (55) years for
					 rental housing development new construction and rehabilitation, a term of
					 twenty (20) years for conventionally-constructed ownership housing or
					 manufactured housing placed on a permanent foundation, and a term of ten (10)
					 years for manufactured housing not on a permanent foundation. The Department
					 may in its discretion prescribe a lesser period for the duration of Grant
					 Agreements relating to housing to be developed for ownership by individual
					 agricultural households.
(5)
					 Conveyance. It shall state that for the duration of the Grant Agreement, no
					 contract for sale or conveyance of the housing development, or any portion
					 thereof, shall be entered into or made without the express prior written
					 approval of the Department, which approval shall be given in accordance with
					 the provisions of Section 7228.
(6)
					 Covenants. In addition, the Grant Agreement will contain, but not be limited
					 to, the following covenants:
(A) Agricultural
					 households shall be given a priority for occupancy in non-assisted units, and
					 those agricultural households of low income shall be given a preference for
					 occupancy in assisted units.
(B)
					 The grantee shall accept the criteria for tenant and homeowner selection that
					 has been determined by the Department for assisted units.
(C) The grantee shall accept the terms of
					 occupancy agreements that have been prescribed by the Department for assisted
					 units.
(D) With regard to rental
					 housing developments, the grantee shall additionally agree to abide by the
					 provisions of Section 7234.
(7) The Grant Agreement shall further provide
					 that in the event of a breach of any of its conditions or covenants, the
					 grantee or its successors in interest, the Department shall have the option to
					 enforce the Grant Agreement by proceeding at law or in equity. The Department
					 may, at its option, require the grantee or its successor in interest to
					 immediately repay to the State the total amount of the grant then due with
					 interest. The interest rate shall be the same as the average rate returned by
					 the investment of state funds through the California Pooled Money Investment
					 Board from the date of breach to the date of repayment.
(8) It shall provide that in the event of a
					 forced sale or conveyance of the housing development resulting from an action
					 to foreclose on a mortgage or deed of trust, the execution of a judgment lien,
					 or other action resulting in an involuntary sale, the purchaser shall take
					 title subject to these conditions and limitations, unless the appropriate
					 amount of the grant is returned to the Department in accordance with these
					 regulations.