Section 7309 - Appraisal and Market Study Requirements(a) As a condition of funding, the Department may require an appraisal or market study, or both, to: (1) establish a market value for the land to be purchased or leased as part of the Project for purposes of evaluating the reasonableness of the purchase price or lease terms pursuant to Section 7304;(2) assist with establishing other reasonable development costs pursuant to Section 7304;(3) assess Fiscal Integrity;(4) verify an adequate tenant market.(b) Any appraisal required by the Department shall be prepared at the Sponsor's expense by an individual or firm which:(1) has the appropriate license and the knowledge and experience necessary to competently appraise low-income residential rental property;(2) is aware of, understands, and correctly employs those recognized methods and techniques that are necessary to produce a credible appraisal;(3) in reporting the results of the appraisal, communicates each analysis, opinion and conclusion in a manner that is not misleading as to the true value and condition of the property; and(4) is an independent third party having no identity of interest with the Sponsor, the partners of the Sponsor, the intended partners of the Sponsor, or with the general contractor.(c) Any market study required by the Department shall be prepared at the Sponsor's expense by an individual or firm which:(1) has the knowledge and experience necessary to conduct a competent market study for low-income residential rental property;(2) is aware of, understands, and correctly employs those recognized methods and techniques that are necessary to produce a credible market study;(3) in reporting the results of the market study, communicates each analysis, opinion and conclusion in a manner that is not misleading as to the true market needs for low-income residential property; and(4) is an independent third party having no identity of interest with the Sponsor, the partners of the Sponsor, the intended partners of the Sponsor, or with the general contractor.Cal. Code Regs. Tit. 25, § 7309
1. New section filed 1-8-2002; operative 1-8-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2). Note: Authority cited: Sections 50406(n), 50675.1(c) and 50675.11, Health and Safety Code. Reference: Sections 50675.1(c) and 50675.7(b)(3), Health and Safety Code.
1. New section filed 1-8-2002; operative 1-8-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).