California Code of Regulations
Title 21 - Public Works
Division 3 - California State Transportation Agency
Chapter 4 - Regulations Pursuant to the Housing Financial Discrimination Act of 1977
Article 2 - Nondiscrimination Requirements
Section 7109.4 - Code Violations and Condition of Property
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
Financial institutions may not deny a loan nor require corrective work as a condition of granting the loan because of the physical condition of the property or code violations relating to the property except as follows:
(a) If the cost of the corrective work is more than ten percent of the market value of the property before repairs or
(b) If necessary to correct dangerous conditions which are a threat to the health and safety of the occupants or to correct significant structural defects, or to make the property reasonably habitable. Repairs which are primarily cosmetic including but not limited to painting, redecorating, landscaping, and minor repairs may not be required.
Where corrective work is required, the financial institution should make every reasonable effort to increase the loan amount to include the enhanced value which will result from the required corrective work.
Note: Authority cited: Section 35814, Health and Safety Code. Reference: Sections 35810- 35815, Health and Safety Code.
