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 9 - Calhome Program Requirements
Article 5 - Owner-Occupied Rehabilitation Programs
Section 7735 - Underwriting and Construction Requirements

Universal Citation: 25 CA Code of Regs 7735

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

(a) CalHome Recipients shall develop and employ Owner-Occupied Rehabilitation Program Guidelines submitted to and approved by the Department as addressing the following topics:

(1) owner-occupied rehabilitation underwriting guidelines including borrower credit requirements; and

(2) rehabilitation construction requirements.

(b) Prior to commencement of rehabilitation work, an appraisal shall be obtained with the following requirements:

(1) the appraisal may be prepared by Recipient's staff using the sales of comparable properties approach to determine value. If comparable sales are not available, the appraisal shall be prepared by a State-licensed, residential property appraiser;

(2) the appraisal shall take into consideration the estimated value of the rehabilitation work to be completed on the property and shall include the pre-rehabilitated value and the after-rehabilitated value; and

(3) An appraisal is not required in the case of rehabilitation work on a manufactured home not on a permanent foundation.

(d) Recipients must obtain title insurance in the amount of the Cal-Home Program loan at close of escrow.

(e) Fire insurance (and Flood insurance where applicable) requirements are as follows:

(1) Recipient must require borrowers to maintain insurance on the property in an amount at least equal to the replacement value of the improvements; and

(2) Recipient must be named as additional loss payee on the policy.

1. New section filed 9-29-2003; operative 9-29-2003 pursuant to Government Code section 11343.4 (Register 2003, No. 40).

Note: Authority cited: Sections 50406(n) and 50650.2, Health and Safety Code. Reference: Sections 50650.3(b) and 50650.7, Health and Safety Code.

Disclaimer: These regulations may not be the most recent version. California may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.