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 7228 - Conveyance of the Housing Development

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The following provisions govern the sale or conveyance of
						the housing development, or any part thereof.
(a) Conveyance to Agricultural Households for
					 the Purpose of Homeownership. If the grantee intends to sell or convey all or a
					 portion of the housing development to individual agricultural households for
					 the purpose of homeownership, the Department will authorize the sale or
					 conveyance after the following conditions are met:
(1) Identification of Assisted Units. The
					 grantee must identify any assisted units that will be located in the conveyed
					 portion(s) of the housing development.
(2) Allocation of Grant Funds. For each
					 assisted unit identified, the grantee shall specify in monetary terms the
					 portion of the grant funds that will be used to reduce the costs of acquiring
					 ownership of the assisted unit by an agricultural household.
(3) Subsequent Grant Agreement. Prior to or
					 concurrently with the sale or conveyance of an assisted unit, the grantee shall
					 ensure that a representative of the agricultural household which will own the
					 assisted unit executes a Subsequent Grant Agreement with the Department which
					 shall be in a form prescribed by the Department and contain the following
					 conditions:
(A) It shall be binding upon the
					 agricultural household for a term of twenty (20) years for
					 conventionally-constructed housing or manufactured housing placed on a
					 permanent foundation, and for a term of ten (10) years for manufactured housing
					 not on a permanent foundation.
(B)
					 It shall require the members of the agricultural household to reside in the
					 assisted unit for the duration of the Subsequent Grant Agreement.
(C) It shall contain the following conditions
					 with respect to the sale or conveyance of an assisted unit by the agricultural
					 household.
1. If an assisted unit is sold or
					 conveyed within a period of 10 years from the date of execution of the
					 Subsequent Grant Agreement, an amount equal to the sum allocated to the
					 assisted unit pursuant to subdivision (a)(2) of this section shall be paid to
					 the Department.
2. If an assisted
					 unit, other than a manufactured home not installed on a permanent foundation,
					 is sold or conveyed more than ten years after the date of execution of the
					 Subsequent Grant Agreement, the Department shall be repaid an amount equal to
					 the sum allocated pursuant to subdivision (a)(2) of this section minus 10% of
					 that amount for each additional year that the agricultural household occupies
					 the assisted unit beyond the tenth year. The lien for a manufactured home not
					 installed on a permanent foundation shall be released 10 years from the date of
					 execution of the Subsequent Grant Agreement, and no repayment of grant funds
					 will be required, if the homeowner is in compliance with the Subsequent Grant
					 Agreement.
3. The Department shall
					 determine whether or not any amounts subject to repayment to the Department, as
					 specified above, will be assigned to the new owner in lieu of repayment to the
					 Department.
4. The Subsequent Grant
					 Agreement shall terminate after the grant funds have been repaid to the
					 Department and the assisted unit has been sold or
					 conveyed.
(4)
					 Recordation of the Subsequent Grant Agreement. The grantee shall cause the
					 Subsequent Grant Agreement and other pertinent documents to be recorded in the
					 official records of the county in which the housing development is
					 located.
(5) Sale of Non-assisted
					 Units. After the total number of assisted units has been determined, the
					 Department shall approve the sale or conveyance of any housing units not
					 identified as assisted units and shall, at the time of sale or conveyance,
					 release any such units from the lien securing performance of the Grant
					 Agreement. The grant shall not be used to reduce the acquisition cost of a
					 non-assisted unit.
(6) Termination
					 of Grant Agreement. The Department shall terminate the Grant Agreement and the
					 lien securing its performance after sale or conveyance of all of the assisted
					 units if all of the conditions of the Grant Agreement have been satisfied, as
					 determined by the Department.
(7)
					 The Department may charge an administrative fee for its costs in processing a
					 Subsequent Grant Agreement.