Cal. Code Regs. tit. 25 § 7928

Current through Register 2024 Notice Reg. No. 50, December 13, 2024
Section 7928 - Partial Repayment
(a) A purchaser of property assisted under the Program may repay a portion of the financial assistance provided by the state and increase its equity in the property if:
(1) the State requires or approves such partial repayment;
(2) no more than one partial repayment is made within any period of twelve (12) months; and
(3) such partial repayment is not less than one thousand dollars ($1,000).
(b) Where a purchaser wishes to increase its equity in the assisted property, the entitlements of the purchaser and the Department respectively shall be calculated in accordance with the following formula:

E =(V x ER) + R
V

E is the proportion of the value of the property to which the purchaser is entitled after partial repayment

V is the value of the property at the time of the partial repayment

ER is the proportion of the value of the property to which the purchaser is entitled immediately before the partial repayment is made

R is the amount of the partial repayment plus the cost to the recipient of an appraisal

On each occasion that a partial repayment is made, a new value for E shall be determined by applying the formula. The value of E thus determined will be used as ER the next occasion on which a part repayment is made or as the proportion of the purchaser's equity in the property at sale or transfer. The amount to which a household shall be entitled on sale or termination of state financial assistance shall be the sale price or fair market value multiplied by the value of E at the time of sale or termination.

(c) Whenever there is an adjustment to the proportional amounts to which the Department and purchaser are entitled upon sale, a servicer of State loans shall keep a record of such an adjustment and shall forward a copy to the Department and governmental agency.

Cal. Code Regs. Tit. 25, § 7928

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 A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 3-13-81.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. 16).
3. Amendment filed 6-11-81 as an emergency; effective upon filing (Register 81, No. 25).
4. Order of Repeal of 6-11-81 emergency order filed 6-19-81 by OAL pursuant to Government Code Section 11349.6 (Register 81, No. 25).
5. Amendment of subsections (a)(1) and (c) filed 7-6-81 as an emergency; effective upon filing (Register 81, No. 28). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 11-3-81.
6. Certificate of Compliance as to 7-6-81 order transmitted to OAL 10-23-81 and filed 11-18-81 (Register 81, No. 47).

Note: Authority cited: Section 50406, Health and Safety Code. Reference: Sections 50775, 50776 and 50777, 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. 16).
3. Amendment filed 6-11-81 as an emergency; effective upon filing (Register 81, No. 25).
4. Order of Repeal of 6-11-81 emergency order filed 6-19-81 by OAL pursuant to Government Code Section 11349.6 (Register 81, No. 25).
5. Amendment of subsections (a)(1) and (c) filed 7-6-81 as an emergency; effective upon filing (Register 81, No. 28). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 11-3-81.
6. Certificate of Compliance as to 7-6-81 order transmitted to OAL 10-23-81 and filed 11-18-81 (Register 81, No. 47).