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 8056 - Legal Documents

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The department shall enter into a
					 Standard Agreement with the local entity. This contract shall require the
					 parties to comply with the regulations and provisions described in this
					 subchapter. The Standard Agreement shall encumber monies from the account in an
					 amount sufficient to fund the approved local program. The agreement shall also
					 stipulate performance goals required for continued local program compliance and
					 funding. The Standard Agreement shall contain, but not be limited to,
					 provisions related to the following:
(1) the
					 granting and cancellation of commitments of state funds to the local
					 entity;
(2) local entity
					 responsibilities for local program operation, including program timeframes,
					 performance goals, marketing, loan processing, loan funding, construction
					 monitoring, construction disbursement, report submissions, and loan file
					 documentation;
(3) eligible uses of
					 deferred payment loan funds for rehabilitation costs and grant funds for local
					 program administration expenses;
(4) standards and processes for certification
					 and decertification of the local entity's ability to approve borrower deferred
					 payment loans;
(5) reporting
					 requirements, including quarterly reports, pursuant to section 8060;
(6) local entity responsibility for the use
					 of escrow companies and interest-bearing escrow accounts for the disbursement
					 of loan funds and the use of other consultants providing third-party services
					 necessary for local program administration;
(7) the criteria to be used in evaluating
					 Prospective borrower eligibility for a deferred payment loan, including income,
					 ownership, credit history, loan security, rehabilitation cost, and monthly
					 housing expense;
(8) the loan
					 approval process requiring that the local entity evaluate and document
					 applications for deferred payment loans pursuant to section 8057;
(9) deferred payment loan terms and
					 conditions;
(10) fund disbursement
					 requirements, including provisions for receipt, use, and accounting of
					 department funds pursuant to section 8058;
(11) rehabilitation work requirements such as
					 drawings, construction schedules, rehabilitation specifications and standards,
					 work write-ups, cost breakdowns, bid procedures, construction contracts,
					 inspections, licenses, insurance, lien releases, cost accounting and
					 documentation, and owner-performed work;
(12) requirements that the local entity not
					 discriminate or permit discrimination on account of race, color, religion,
					 ancestry, sex, age, national origin, marital status, and mental or physical
					 handicap, in accordance with all local, State, and Federal laws governing and
					 restricting such discrimination or requiring affirmative action. To further
					 ensure that deferred payment loans are made in a nondiscriminatory manner, the
					 local entity shall agree to abide by the restrictions placed upon financial
					 institutions under the Holden Act (Health and Safety Code division 24, part 6,
					 "Financial Discrimination" commencing with section 35800);
(13) remedies available to the department in
					 the event of a violation, breach, or default of the Standard Agreement to
					 ensure compliance with program requirements for the full term of the agreement,
					 including repayment of all costs of enforcement;
(14) requirements for the execution and,
					 where appropriate, the recordation of the agreements and documents required
					 under the program;
(15) requirement
					 that the local entity assign the borrower loan agreement to the
					 department;
(16) any terms and
					 conditions as required by local, State, or Federal law; and
(17) other provisions necessary to ensure
					 compliance with the requirements of this program.