Cal. Code Regs. tit. 25 § 8047

Current through Register 2024 Notice Reg. No. 50, December 13, 2024

Section 8047 - Term of Loan

(a) The initial loan term of a deferred payment loan to non-elderly borrowers shall be five years. In the case of elderly borrowers, deferred payment loans shall be due upon transfer of title to the property. Deferred payment loans to both elderly and non-elderly borrowers shall be due and payable if the borrower no longer occupies the property as his or her principal residence for reasons other than medical treatment or disability which require a temporary alternate residence.

(b) The department shall allow additional five-year terms to a non-elderly borrower, based on provided evidence which demonstrates that:

(1) the title to the property has not been sold or transferred except to the borrower's spouse or assumed by an eligible borrower as allowed in section 8051(a) and (d);

(2) the borrower continues to occupy the property as a principal residence; and

(3) the borrower's income is such that the deferred payment loan could not be repaid by refinancing from other sources without the borrower exceeding the ability to afford his or her housing costs. Such evidence may include income verifications and written rejections of refinancing applications from lending institutions which provide the reasons for rejection.

(c) A borrower seeking an extension shall do the following:

(1) submit a written request to the department for extension of the deferred payment loan;

(2) provide the evidence required in subdivision (b) of this section; and

(3) execute the documents required in section 8056(c).

(d) A loan extension shall be conditioned on amortized payments made by the borrower pursuant to section 8049(d).

(e) If a non-elderly borrower becomes elderly during the term of the deferred payment loan, the terms and conditions specified for elderly borrowers shall apply.

Cal. Code Regs. Tit. 25, § 8047

1. New section filed 11-30-89 as an emergency; operative 11-30-89 (Register 89, No. 49). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 3-30-90.
2. New section refiled 3-26-90 as an emergency; operative 3-30-90 (Register 90, No. 16). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 7-30-90.
3. New section filed 7-26-90 as an emergency; operative 7-26-90 (Register 90, No. 38). A Certificate of Compliance must be transmitted to OAL by 11-23-90 or emergency language will be repealed by operation of law on the following day.
4. Amendment of subsection (a) filed 8-27-90 as an emergency; operative 8-27-90 (Register 90, No. 42). A Certificate of Compliance must be transmitted to OAL by 12-26-90 or emergency language will be repealed by operation of law on the following day.
5. New section refiled 11-16-90 as an emergency; operative 11-16-90 (Register 90, No. 51). A Certificate of Compliance must be transmitted to OAL by 3-18-91 or emergency language will be repealed by operation of law on the following day.
6. Readoption of 8-27-90 order filed 12-21-90 as an emergency; operative 12-21-90 (Register 91, No. 7). A Certificate of Compliance must be transmitted to OAL by 4-22-91 or emergency language will be repealed by operation of law on the following day.
7. Certificate of Compliance as to 11-30-89 order, readopted and operative on 3-30-90, 7-26-90 and 11-16-90, including amendment of subsections (a), (b), (c), and (d) transmitted to OAL 11-30-90 and filed 12-31-90 (Register 91, No. 7).

Note: Authority cited: Section 50668.5(g), Health and Safety Code. Reference: Sections 50660 and 50662, Health and Safety Code.