Section 7157 - Protection of Program Funds(a) In order to protect the Program Funds awarded to a Grantee, the Grantee shall provide the Program Funds in the form of a loan evidenced by a promissory note the repayment of which shall be secured either by a deed of trust recorded against the title to the real property or a security interest in the manufactured home being assisted with Program Funds. The promissory note shall contain a special provision that repayment shall be made to the Department in the event that the Grantee is no longer in operation.(b) Where Program Funds are provided to a rental housing development, emergency shelter, safe haven or transitional housing:(1) The Grantee and the housing developer borrower shall enter into a development loan agreement setting forth the terms and conditions for closing and disbursing the Program Funds which shall include, but not be limited to, requirements for title insurance for the deed of trust, and the borrower's responsibilities and obligations with respect to hazardous substance detection, disclosure, and remediation.(2) The Grantee shall submit documentation of its loan guidelines and underwriting standards and procedures for review by the Department.(3) The Department shall have the right to request copies of documentation of the activities of the Local Housing Trust Fund at any time prior to or after disbursement of Program Funds.(c) Where Program Funds are used for a Homeownership Project the Grantee shall record a deed restriction in compliance with Health and Safety Code section 50843.5(d)(3) unless such a deed restriction would conflict with the requirements of law or another public funding source.Cal. Code Regs. Tit. 25, § 7157
1. New section filed 12-5-2008; operative 12-5-2008 pursuant to Government Code section 11343.4 (Register 2008, No. 49). Note: Authority cited: Section 50406(n), Health and Safety Code. Reference: Sections 50843.5 and 53545.9(c), Health and Safety Code.
1. New section filed 12-5-2008; operative 12-5-2008 pursuant to Government Code section 11343.4 (Register 2008, No. 49).