Cal. Code Regs. Tit. 21, § 1485.1 Priority 5: 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, § 1485.1
• Year: 2023

(a) Restrictions. As a condition for sale at a Reasonable Price at Priority 5, a Housing-Related Private Entity shall agree to Use and Resale Restrictions 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. 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 a subsequent sale; and

(6) monitoring and enforcement provisions.

(b) Restriction on Use. A Housing-Related Private Entity shall rehabilitate a property purchased at Priority 5 to be used as either:

(1) If a Surplus Residential Property, as Decent, Safe, and Sanitary housing at Affordable Rents for Persons and Families of Low or Moderate Income (A) Current Tenants shall have the first right of occupancy. (B) If the current Tenants are Persons and Families of Low or Moderate Income, then the purchasing entity shall provide them Affordable Rents. (C) If the current Tenants are not Persons and Families of Low or Moderate Income, then the purchasing entity may collect market rent. The restrictions described in (1) will begin immediately after the market rate Tenants vacate. (D) The restrictions described in this section shall be for no less than 55 years from the close of escrow described in § 21undefined1485(k).

(2) If a Single-Family Residence as Decent, Safe, and Sanitary owner-occupied housing for Persons and Families of Low or Moderate Income.(A) If Current Tenants are Persons and Families of Low or Moderate Income then they shall be offered first right of refusal. (B) The sales price shall be an Affordable Price calculated pursuant to § 21undefined1481.2(c). All subsequent sales within the period described in (C) shall also be at an Affordable Price calculated pursuant to § 21undefined1481.2(c). (C) The restrictions described in this section shall be for no less than 45 years from the close of escrow described in § 21undefined1485(k).

(c) Resale. An...