Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a)
(1) The reasonable good faith determination
of whether a property owner has a reasonable ability to pay the annual
assessment shall be made and documented independently from any statement by a
property owner regarding whether the property owner has the ability to pay the
annual payment obligations under an assessment contract.
(2) This subdivision shall not be applicable
in the case of emergency or immediate necessity under subdivision (e) of
Financial Code section
22687.
(b) In determining a property owner's current
or reasonably expected income, the following principles apply.
(1) The examples of the records that a
program administrator may use to verify a property owner's income or assets in
subdivision (b)(1) of Financial Code section
22687 are
not exhaustive.
(2) A temporary
source of income under subparagraph (b)(2)(A) of Financial Code section
22687
includes income that it reasonably may be concluded will not continue during
the foreseeable future.
(3) The
property owner's household income may only include the incomes of the persons
identified in subdivision (a) of Financial Code section
22687. If
other members of the property owner's household are paying rent or board to the
property owner, this income shall be verified through a written rental
agreement and reasonably reliable third-party records that demonstrate the
property owner's receipt of such income for at least the prior six months. If a
written rental agreement is unavailable, an agreement may be verified through
the written statement of the individual renting or boarding from the property
owner and evidence that the renter or boarder has resided in the property
owner's household for at least the prior six months.
(4) Rental income for properties other than
the property owner's household may be included in determining income provided
that all mortgage principal and interest payments, insurance, property taxes,
mortgage guaranty insurance, and other preexisting fees and assessments for the
rental property are subtracted from gross rental receipts before such income is
included in the property owner's total income.
(5) A program administrator shall not
determine the income of a property owner based on predictive or estimation
methodologies that are not specific to the income of the property owner, such
as, but not limited to, methodologies that estimate income based on average
incomes in the property owner's geographic location, or average wages paid by
the property owner's employer.
(6)
Nonliquid assets under subparagraph (b)(2)(B) of Financial Code section
22687
include assets, such as funds in retirement accounts, that would result in a
financial penalty for a property owner if withdrawn or liquidated.
(7) Funds received from a reverse mortgage
shall not constitute income.
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.
