Section 6937.4 - Time at Which Eligibility Will be Determined(a) Rental Assistance or Assisted Units (1) Initial eligibility of an applicant under a program which provides rental assistance or an applicant for an assisted unit in a rental housing development shall be determined as part of the initial determination of the applicant's overall eligibility for the individual program. If an applicant fails to establish eligibility pursuant to subsection (b) of section 6939.2, the rental assistance or access to an assisted unit shall be denied.(2) Continuing eligibility of an existing household in a rental housing development shall be determined at the time of the household's next eligibility re-certification pursuant to the requirements of the regulatory agreement. If an existing household fails to demonstrate eligibility pursuant to this subchapter, the household shall be given a written notice that the tenant's assistance will be withdrawn 30 days thereafter, either by increasing the unit's rent to a non-assisted rent level (subject to any applicable rent restrictions imposed by existing regulatory agreements by and between the project sponsor and any other governmental entity), or in the case of a direct rental subsidy, by terminating that subsidy. If the household occupies an assisted unit, the notice shall also inform the household that the tenancy will be terminated in 6 months unless, within that period, a vacant non-assisted unit is re-designated as a replacement assisted unit. In that case, the household may be permitted to remain in the formerly-assisted unit at a non-assisted rent.(3) Eligibility of a household in a rental housing development need only be verified once during the time the household resides in that development.(b) Home Owner Assistance (1) Initial eligibility of an applicant for homeowner assistance shall be determined during loan origination and must be completed prior to the closing of the loan or grant. If an owner fails to establish eligibility pursuant to this subchapter, the assistance shall be denied.(2) For all homeowners or shareholders in cooperatives who have received a loan or grant prior to the effective date of these regulations, and for owners or shareholders who have received an initial determination of eligibility under subsection (1), continuing eligibility shall be established prior to the Department's approval of any change concerning the loan or grant, or the underlying property which, pursuant to program regulations or the loan or grant documents, requires the Department's prior approval (e.g., loan extension, assumption, assignment, or subordination, or transfer, or encumbrance of the property). If the homeowner or shareholder fails to establish eligibility, the Department shall withhold its approval of the change. Under no circumstances may the assistance provided to a homeowner be transferred to an unqualified alien, nor may an unqualified alien be added to the title in a manner which would allow that unqualified alien to be a beneficiary of the program.(c) All determinations of ineligibility shall be in writing, and shall include the reasons for the determination and a summary of the applicable appeal procedures set forth in section 6939.6.Cal. Code Regs. Tit. 25, § 6937.4
1. New section filed 9-9-98; operative 9-9-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 37). Note: Authority cited: Sections 50402, 50406, 50406(h) and (n), 50662, 50668.5(g), 50697(d), 50710, 50771.1, 50786(a), 50801.5, 50806.5, 50884, 50895 and 50896.3(b), Health and Safety Code; and 24 CFR 570.489(b). Reference: (Pub. L. 104-193 (PRAWORA)); and 8 U.S.C. §§ 1621, 1622, 1641 and 1642.
1. New section filed 9-9-98; operative 9-9-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 37).