Cal. Code Regs. Tit. 21, § 1481.1 Affordable Price Sales: Use Restrictions

• Library: California Code of Regulations
• Edition: 2023
• Currency: Current through Register 2023 Notice Reg. No. 52, December 29, 2023
• Citation: Cal. Code Regs. Tit. 21, § 1481.1
• Year: 2023

(a) Restrictions. As a condition for sale at an Affordable Price, the purchasing Occupant shall agree to Use and Resale Restrictions, which shall be recorded as an encumbrance and lien against the property the buyer purchases, containing the terms, conditions, and restrictions imposed by the Department to ensure the property remains available to Persons and Families of Low or Moderate Income or Above-Moderate Income Households. Such restrictions include, but are not limited to:

(1) restricting the use of the property; and

(2) restricting rental of the property and

(3) restricting transfers of the property; and

(4) restricting refinancing of the property; and

(5) specifying distribution of proceeds from any subsequent sale; and

(6) monitoring and enforcement provisions.

(b) Renting.

(1) A property sold at an Affordable Price shall be used only as owner-occupied housing. No portion of a property may be offered for rent, except with prior written permission from the Department. The Department may provide written permission to rent only if the Affordable Price buyer demonstrates a hardship beyond the control of the buyer that has forced a temporary relocation. Hardship may be supported by (A) loss of work or reassignment to a new location; or (B) personal health problems of the Affordable Price buyer or that of their immediate family member; or (C) divorce.

(2) An Affordable Price buyer shall not, under any circumstances, allow rental of a property purchased at an Affordable Price to exceed a total of 12 months in any 60 month-period

(3) An Affordable Price buyer, if permitted to rent by the Department, may only rent to Persons and Families of Low or Moderate Income at an Affordable Rent. The monthly rent income shall not exceed the Affordable Housing Cost used to calculate the Affordable Price.

(c) Resale. A property sold at an Affordable Price shall not be resold for five years from the date of close of escrow, except as specified in (1).

(1) The Department may permit property to be resold within five years from the date of close of escrow if the Affordable Price buyer demonstrates they have been forced to relocate permanently because of a hardship beyond their control. If the Department permits resale, then the...