California Code of Regulations › Title 25 - Housing and Community Development › Division 2 - California Housing Finance Agency › Chapter 3 - Restrictions on Agency Public Benefits to Aliens › Article 2 - Eligibility for Benefits › Section 12106 - Remedies for Ineligibility

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) In the case of a new tenancy, any
				  household containing one or more applicants who are determined to be ineligible
				  prior to occupancy, shall be denied occupancy to the multifamily program
				  unit.
(b) Where a multifamily
				  program unit is occupied by an ineligible household, the housing sponsor shall,
				  within one hundred eighty (180) calendar days following the completion of the
				  eligibility verification process, either commence proceedings to evict the
				  ineligible household or substitute for the noncompliant multifamily program
				  unit another unit within the housing development or residential structure which
				  is occupied by an eligible household (or which is vacant and reserved for
				  occupancy by an eligible new tenancy household) and which is otherwise
				  compliant with the agency's requirements. Notwithstanding any other provision
				  of this chapter, in no event shall an eviction be commenced with respect to a
				  multifamily program unit before one hundred eighty (180) calendar days
				  following the effective date of this chapter. Once an eviction is commenced it
				  shall be diligently pursued by the housing sponsor until the ineligible
				  household is removed, unless prior thereto, the housing sponsor substitutes a
				  compliant multifamily program unit for the noncompliant one. So long as such
				  eviction is diligently pursued, the housing sponsor and the affected unit shall
				  not be in violation of this chapter with respect to such unit.
(c) In the case of a new loan, all applicants
				  who are not finally verified as eligible shall be denied the single family
				  program loan. In the case of any single family program loan, all applicants who
				  are not finally verified as eligible shall be denied any necessary agency
				  approval of their acquisition of, or addition to title to, the residential
				  structure.
(d) In the event that an
				  applicant's citizenship, other nationality or alien status is misrepresented to
				  a housing sponsor, qualified mortgage lender, the agency or their
				  representatives for the purpose of obtaining an agency public benefit, such
				  housing sponsor, qualified mortgage lender, the agency or their representatives
				  may take appropriate remedial action against such applicant which may include
				  but shall not necessarily be limited to denial of a single family program loan,
				  denial of approval of the applicant's acquisition, or addition to title to, the
				  residential structure securing a single family program loan, foreclosure of a
				  single family program loan or debarment from the receipt of future agency
				  public benefits.
(e) In the event
				  that a housing sponsor or qualified mortgage lender fails to comply with the
				  requirements of this chapter, such noncompliance shall be deemed to be a
				  violation of not only this chapter but also a violation of any regulatory
				  and/or other loan agreement with the agency or mortgage purchase and/or
				  servicing and/or other agreement with the agency, as applicable, which
				  violation shall entitle the agency to pursue any appropriate remedies against
				  the housing sponsor or qualified mortgage lender under any provisions of such
				  agreements or otherwise available at law or in equity. Notwithstanding the
				  foregoing, a qualified mortgage lender shall only be liable for repurchasing a
				  loan if it intentionally or negligently made the loan to an ineligible
				  applicant.
1. New
					 section filed 6-9-98 as an emergency; operative 8-1-98 (Register 98, No. 24). A
					 Certificate of Compliance must be transmitted to OAL by 11-30-98 or emergency
					 language will be repealed by operation of law on the following
					 day.
2. Certificate of Compliance as to 6-9-98 order transmitted to
					 OAL 9-21-98 and filed 10-28-98 (Register 98, No. 44).
3. Renumbering
					 of former section 12106 to section 12105 and renumbering of former section
					 12107 to section 12106, including amendment of section and NOTE, filed 11-2-98;
					 operative 12-2-98 (Register 98, No. 45).
Note: Authority cited: Sections 51050(e), 51050(s), 50167
						and 51349, Health and Safety Code. Reference: 8 U.S.C. §§ 1601, 1621,
						1625, 1641 and 1642; and Sections 51050-51070, 51100-51253 and 51325-51340,
						Health and Safety Code.