California Code of Regulations
Title 10 - Investment
Chapter 3 - Commissioner of Financial Protection and Innovation
Subchapter 6 - California Financing Law
Article 15 - Pace Program Administrators
Section 1620.21 - Ability to Pay Determinations

Universal Citation: 10 CA Code of Regs 1620.21

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) A program administrator shall maintain written procedures for determining whether a property owner has a reasonable ability to pay the annual payment obligations for the PACE assessment as required under Financial Code sections 22686 and 22687, which shall include the following:

(1) The criteria used for identifying whether a property owner has sufficient residual income to meet basic living expenses.

(2) The criteria used for determining whether income is from a temporary source.

(3) The criteria used for determining whether assets are liquid.

(4) Any assumptions included in the determination, such as the continuation of, or growth of, income, the continuation or extinguishment of debt, and the continuation or extinguishment of any basic household living expenses.

(5) If the program administrator allows exceptions to any of its criteria for determining a property owner's ability to pay the property owner's PACE assessment obligations, the nature of any permissible exceptions and the conditions allowing for the exceptions.

(b)

(1) A program administrator may not base employee compensation on a positive determination of a property owner's reasonable ability to pay the annual payment obligations for the PACE assessment.

(2) The prohibition in paragraph (b)(1) shall apply to any person making an ability to pay determination and any person with the ability to overturn an ability to pay determination.

(3) This section shall not restrict an employee from participating in any stock, bonus, or similar incentive plan that is generally available to employees nor any other type of compensation plan that is not specifically contingent on the outcome of ability to pay determinations.

1. New section filed 8-5-2021; operative 10-1-2021 (Register 2021, No. 32). Transmission deadline specified in Government Code section 11346.4(b) extended 60 calendar days pursuant to Executive Order N-40-20 and an additional 60 calendar days pursuant to Executive Order N-71-20. Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20 and an additional 60 calendar days pursuant to Executive Order N-71-20.

Note: Authority cited: Section 22150, Financial Code. Reference: Sections 22686 and 22687, Financial Code.

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