(a) All plans and specifications shall be prepared by persons licensed by the State of California to undertake the type of design work required by the project. All design plans, specifications and reports shall be signed by the licensee. The designer's license number shall appear on the documents. Plans and specifications for work to be accomplished by force account shall be in final form to permit immediate undertaking of the project.

(b) Property Control. Land and water area to be acquired with the loan funds shall be acquired promptly after execution of the loan agreement. No loan funds for strictly construction purposes shall be released until all land and water areas necessary for the construction of the project have been acquired as evidenced by a title insurance policy or other evidence satisfactory to the department. If the loan is based upon a leasehold estate, applicant's leasehold estate (including renewal options) as specified by contract and with finite time periods, must extend at least to the end of the loan period.