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§ 7752. Legal Documents.

25 CA ADC § 7752Barclays Official California Code of Regulations

Barclays California Code of Regulations
Title 25. Housing and Community Development
Division 1. Housing and Community Development
Chapter 7. Department of Housing and Community Development Programs
Subchapter 9. Calhome Program Requirements
Article 10. Program Operations
25 CCR § 7752
§ 7752. Legal Documents.
Currentness
(a) Upon the award of funds the Department shall enter into a Standard Agreement with the Recipient constituting a conditional commitment of funds. This contract shall require the parties to comply with the requirements and provisions of these regulations. The Standard Agreement shall encumber State monies in an amount sufficient to fund the approved local program or project, subject to limits established in the NOFA and consistent with the application. The Standard Agreement shall contain, but not be limited to, the following as appropriate for the activity. In the case of a self-help technical assistance award, the Department shall enter into a Technical Assistance Standard Agreement (TASA) pursuant to CCR Title 25, Division 1, Chapter 7, Subchapter 6.5, Article 3, Section 7554. Where that section and the following deviate, the aforementioned Section 7554 takes precedence.
(1) a description of the approved local program or project and the permitted uses of CalHome program funds;
(2) provisions governing the amount, terms and conditions of the Department's development loan or grant to the Recipient;
(3) for homeownership development projects, provisions governing the construction work and, as applicable, the acquisition of the project site, and the disbursement of loan proceeds;
(4) for self-help technical assistance projects, a budget and a timetable for completion of the project;
(5) requirements for the execution and, where appropriate, the recordation of the agreements and documents required under the CalHome Program;
(6) for a local program or project, the Recipient's responsibilities for operation of the local program or completion of the project, including, but not limited to, number of units to be assisted, marketing, CalHome Program loan processing and funding, construction monitoring and disbursement, report submissions, file documentation;
(7) for a homeownership development project, the Recipient's responsibilities for the development of the project, including, but not limited to, number of units to be assisted, marketing, processing of individual homebuyer CalHome Program loans, expiration date, report submissions, file documentation;
(8) manner, timing and conditions for disbursement of CalHome Program or project funds to Recipients;
(9) provisions relating to the placement on or in the vicinity of the homeownership development project site, a sign indicating that the Department has provided financing for the project. The Department may also arrange for publicity of the Department CalHome Program homeownership development loan in its sole discretion;
(10) remedies available to the Department in the event of a violation, breach or default of the standard agreement;
(11) requirements that the Recipient permit the Department or its designated agents and employees the right to inspect the project or local program and all books, records and documents maintained by the Recipient in connection with the local program or self-help technical assistance project grant or development loan or local program individual CalHome Program loans;
(12) special conditions imposed on a case-by-case basis as part of Department approval of the local program or project;
(13) terms and conditions required by federal or state law; and
(14) other provisions necessary to ensure compliance with the requirements of the CalHome Program.
(b) Prior to the disbursement of funds, the Department shall enter into a twenty (20) year monitoring agreement with the Recipient requiring the parties to comply with the requirements and provisions of Section 7724 regarding a reuse account established pursuant to the CalHome legislation. The monitoring agreement shall contain, but not be limited to, the following:
(1) requirements regarding the establishment of a reuse account for the deposit of CalHome loan repayments, including interest and principal, and the requirements for disbursement of funds from the reuse account;
(2) the plan for servicing of the CalHome loans as prepared by the Recipient and reviewed and approved by the Department;
(3) the plan for the reuse of CalHome funds;
(4) requirements for submittal of an annual report;
(5) remedies available to the Department in the event of a violation, breach or default of the monitoring agreement;
(6) requirements that the Recipient permit the Department or its designated agents and employees the right to inspect the local program or project and all books, records and documents maintained by the Recipient in connection with the reuse account and long term loan servicing; and
(7) other provisions necessary to ensure compliance with the requirements of the CalHome Program.
(c) All homeowner/homebuyer CalHome Program loans originated by a Recipient shall be evidenced by the following documents and provisions:
(1) a promissory note evidencing the CalHome Program loan, payable to the Recipient in the principal amount of the CalHome Program loan and stating the terms and rate of interest of the CalHome Program loan consistent with the requirements of the CalHome Program. The Recipient is prohibited from assigning their beneficial interest under the note. The note shall be secured by a deed of trust, or other appropriate security instrument acceptable to the Department, on the homeowner/homebuyer property naming the Recipient as beneficiary. This deed of trust or other appropriate security instrument shall be recorded and shall secure the Recipient's financial interest in the project.
(2) in the case of homeowner rehabilitation CalHome Program loans, a loan agreement between the homeowner and the Recipient governing the rehabilitation and the CalHome Program loan terms. The terms of any other financing provided by the Recipient should also be included.
(d) Development loan legal documents shall include, but not be limited to:
(1) a promissory note evidencing the loan, payable to the Department in the principal amount of the loan and stating the terms of the loan consistent with the requirements of the CalHome Program. The note shall be secured by a deed of trust on the project property naming the Department as beneficiary. This deed of trust shall be recorded junior only to such liens, encumbrances and other matters of record approved by the Department and shall secure the Department's financial interest in the project and the performance of the developer borrower's program obligations;
(2) a development agreement between the Department and the developer borrower for not less than the term of the development loan.
(e) Self-help technical assistance grant legal documents shall include, but not be limited to, an agreement between the Recipient and self-help participants which clearly sets forth what is expected of each party and which clearly shows what work is expected of the participating household.

Credits

Note: Authority cited: Sections 50406(n) and 50650.2, Health and Safety Code. Reference: Sections 50650.2, 50650.3(b), 50650.4 and 50650.7, Health and Safety Code.
History
1. New article 10 (sections 7752-7756) and section filed 9-29-2003; operative 9-29-2003 pursuant to Government Code section 11343.4 (Register 2003, No. 40).
2. New subsections (b)(2) and (b)(4) filed 6-4-2004; operative 7-4-2004 (Register 2004, No. 23).
This database is current through 6/21/24 Register 2024, No. 25.
Cal. Admin. Code tit. 25, § 7752, 25 CA ADC § 7752
End of Document