Section 7228 - Conveyance of the Housing DevelopmentThe following provisions govern the sale or conveyance of the housing development, or any part thereof.
(a) Conveyance to Agricultural Households for the Purpose of Homeownership. If the grantee intends to sell or convey all or a portion of the housing development to individual agricultural households for the purpose of homeownership, the Department will authorize the sale or conveyance after the following conditions are met: (1) Identification of Assisted Units. The grantee must identify any assisted units that will be located in the conveyed portion(s) of the housing development.(2) Allocation of Grant Funds. For each assisted unit identified, the grantee shall specify in monetary terms the portion of the grant funds that will be used to reduce the costs of acquiring ownership of the assisted unit by an agricultural household.(3) Subsequent Grant Agreement. Prior to or concurrently with the sale or conveyance of an assisted unit, the grantee shall ensure that a representative of the agricultural household which will own the assisted unit executes a Subsequent Grant Agreement with the Department which shall be in a form prescribed by the Department and contain the following conditions:(A) It shall be binding upon the agricultural household for a term of twenty (20) years for conventionally-constructed housing or manufactured housing placed on a permanent foundation, and for a term of ten (10) years for manufactured housing not on a permanent foundation.(B) It shall require the members of the agricultural household to reside in the assisted unit for the duration of the Subsequent Grant Agreement.(C) It shall contain the following conditions with respect to the sale or conveyance of an assisted unit by the agricultural household.1. If an assisted unit is sold or conveyed within a period of 10 years from the date of execution of the Subsequent Grant Agreement, an amount equal to the sum allocated to the assisted unit pursuant to subdivision (a)(2) of this section shall be paid to the Department.2. If an assisted unit, other than a manufactured home not installed on a permanent foundation, is sold or conveyed more than ten years after the date of execution of the Subsequent Grant Agreement, the Department shall be repaid an amount equal to the sum allocated pursuant to subdivision (a)(2) of this section minus 10% of that amount for each additional year that the agricultural household occupies the assisted unit beyond the tenth year. The lien for a manufactured home not installed on a permanent foundation shall be released 10 years from the date of execution of the Subsequent Grant Agreement, and no repayment of grant funds will be required, if the homeowner is in compliance with the Subsequent Grant Agreement.3. The Department shall determine whether or not any amounts subject to repayment to the Department, as specified above, will be assigned to the new owner in lieu of repayment to the Department.4. The Subsequent Grant Agreement shall terminate after the grant funds have been repaid to the Department and the assisted unit has been sold or conveyed.(4) Recordation of the Subsequent Grant Agreement. The grantee shall cause the Subsequent Grant Agreement and other pertinent documents to be recorded in the official records of the county in which the housing development is located.(5) Sale of Non-assisted Units. After the total number of assisted units has been determined, the Department shall approve the sale or conveyance of any housing units not identified as assisted units and shall, at the time of sale or conveyance, release any such units from the lien securing performance of the Grant Agreement. The grant shall not be used to reduce the acquisition cost of a non-assisted unit.(6) Termination of Grant Agreement. The Department shall terminate the Grant Agreement and the lien securing its performance after sale or conveyance of all of the assisted units if all of the conditions of the Grant Agreement have been satisfied, as determined by the Department.(7) The Department may charge an administrative fee for its costs in processing a Subsequent Grant Agreement.(b) Conveyance For Continued Agricultural Households Occupancy. If the grantee intends to sell or convey the housing development to an entity that will continue to use the development to provide housing for agricultural households, the Department will authorize the sale or conveyance provided that: (1) The successor in interest to the grantee agrees to assume the obligations of the grantee, including the assumption of the conditions and obligations specified in the Grant Agreement between the grantee and the Department.(2) The successor in interest agrees to take title to the housing development subject to the Grant Agreement between the grantee and the Department.(3) The successor in interest agrees to an extension of the duration of the Grant Agreement where the Department has determined that such an extension would be in the best interest of the continued operation of the housing development.(4) The successor in interest has demonstrated to the satisfaction of the Department that it can adequately operate the housing development in accordance with the requirements of the program and meet its obligations under the Grant Agreement.(c) Conveyance For Use Other Than Agricultural Household Occupancy. The grantee shall not sell or convey the housing development to an entity that will not continue to use the development to provide housing for agricultural households in accordance with program requirements unless the Department has approved such sale or conveyance. The Department will approve a sale or conveyance provided that the grantee has demonstrated to the satisfaction of the Department that good cause exists for terminating the operation of the housing development as provided in Section 7236; and the grantee repays the state the full amount of the grant.Cal. Code Regs. Tit. 25, § 7228
1. Renumbering and amendment of former Section 7228 to Section 7226 and renumbering and amendment of Section 7230 to Section 7228 filed 2-10-83; designated effective 3-4-83 pursuant to Government Code Section 11346.2(d) (Register 83, No. 7).
2. Amendment filed 4-2-2008; operative 5-2-2008 (Register 2008, No. 14). Note: Authority cited: Sections 50402, 50406 and 50517.5(d)(5), Health and Safety Code. Reference: Section 50517.5, Health and Safety Code.
1. Renumbering and amendment of former Section 7228 to Section 7226 and renumbering and amendment of Section 7230 to Section 7228 filed 2-10-83; designated effective 3-4-83 pursuant to Government Code Section 11346.2(d) (Register 83, No. 7).
2. Amendment filed 4-2-2008; operative 5-2-2008 (Register 2008, No. 14).