California Code of Regulations
Title 25 - Housing and Community Development
Division 1 - Housing and Community Development
Chapter 7 - Department of Housing and Community Development Programs
Subchapter 13 - Mobile Home Park Resident Ownership Program
Article 4 - Program Operations
Section 8028 - Disbursement of Loan Funds

(a) The department shall disburse funds pursuant to the terms and conditions specified in the transaction documents with the departments.

(b) The department shall establish presale requirements for each project which must be met prior to the closing for a blanket or individual loans. The presale requirements may include additional requirements such as a higher, minimum percentage of sales if needed to protect the security of program loans. Where program loan funds are being used to purchase individual ownership interests, the minimum percentage of 67 percent (67%) of occupied spaces may be increased to 67 percent (67%) of all spaces in the park. Sales, for the purpose of calculating this percentage, shall include previously consummated sales, sales to be financed with program loans that are ready to close, and sales with other financing that will be consummated simultaneously with the closing of the program loans.

(c) The department may fund blanket loans and individual loans in escrow from the repayment of conversion loans for the project. The department may provide partial releases from the deed of trust and the regulatory agreement as individual loans are funded and recorded.