Section 7818 - Assistance Payment Enforcement(a) If the development assistance payments are made by way of a loan, a deed of trust in favor of the Department, or in the case of payments made through the Agency, in favor of the Agency, securing said loan and the conditions of the regulatory agreement shall be executed which shall create a first or second lien on the housing development with respect to which said loan is made and shall be executed and recorded in accordance with existing applicable laws.(b) If the development assistance payments are made by way of a grant, the regulatory agreement shall provide that failure to operate the development in accordance with the requirements of the Program shall be deemed to be a violation of the regulatory agreement and shall subject the sponsor to the procedure set forth therein.(c) The provisions of Sections 7870, and 7892, as applicable, shall apply to the deed of trust or regulatory agreement.(d) Contemporaneously with the execution and recordation of the deed of trust or regulatory agreement, the Agency or local finance entity shall cause to be recorded, or referenced to a recorded document, in the office of the county recorder of the county in which the assisted units are located, the document(s) evidencing the loan or a grant and conditions therein. It shall be indexed by the recorder in the Grantor Index to the name of the grantee and in the Grantee Index to the name of the State of California, and shall include a legal description of the assisted property that is the subject of the document(s).(e) The obligations of the sponsor under the regulatory agreement shall provide the responsible agency with regulatory authority that is separate and distinct from, and is not dependent or conditioned upon, any financial interest or claim that such agency might otherwise have with respect to the sponsor on account of the development assistance payments.Cal. Code Regs. Tit. 25, § 7818
1. Amendment filed 11-13-80 as an emergency; effective upon filing (Register 80, No. 46). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 3-13-81.
2. Certificate of Compliance transmitted to OAL 3-13-81 and filed 4-14-81 (Register 81, No. 15).
3. Amendment of subsection (a) filed 10-25-82; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 82, No. 44). Note: Authority cited: Section 50737, Health and Safety Code. Reference: Sections 50746, 50755, 50765, Health and Safety Code.
1. Amendment filed 11-13-80 as an emergency; effective upon filing (Register 80, No. 46). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 3-13-81.
2. Certificate of Compliance transmitted to OAL 3-13-81 and filed 4-14-81 (Register 81, No. 15).
3. Amendment of subsection (a) filed 10-25-82; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 82, No. 44).