California Code of Regulations
Title 25 - Housing and Community Development
Division 2 - California Housing Finance Agency
Chapter 3 - Restrictions on Agency Public Benefits to Aliens
Article 2 - Eligibility for Benefits
Section 12102 - When Must Eligibility be Verified
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) In the case of a new tenancy, a multifamily program unit shall not be occupied unless and until the eligibility of all applicants for that unit has been preliminarily verified in accordance with this chapter. Following occupancy the remainder of the applicant's final verification process shall be continued on or before the next scheduled annual eligibility recertification, or, if none is scheduled, within one hundred eighty (180) calendar days of occupancy.
(b) In the case of an existing tenancy, the final verification process shall be commenced on or before the next scheduled annual eligibility recertification of that unit, or if none is scheduled, within one hundred eighty (180) calendar days of the effective date of this chapter. Notwithstanding the foregoing, when a tenancy occupies a non-multifamily program unit within a housing development or residential structure and that unit is substituted by the housing sponsor for a multifamily program unit within such housing development or residential structure, the tenancy shall be treated as an existing tenancy except that the eligibility of all applicants shall be finally verified before it shall be deemed to be qualified as a multifamily program unit.
(c) In the case of a new loan, a single family program loan shall not be made unless and until the eligibility of all applicants has been finally verified in accordance with this chapter. Notwithstanding any other provision of this chapter, in the event that an applicant's new loan verification process is not completed within fifteen (15) calendar days following the commencement of such process, neither the agency nor the qualified mortgage lender shall be required to continue to process or make the loan if either determines, in its sole discretion, that further delay will cause the loan to be uneconomical or otherwise not feasible. In the event that such a determination is made, and notwithstanding any other provision of this chapter, the verification process shall be terminated without further processing or appeal. If such a determination is made, the applicant(s) shall immediately be given a written notice of it.
(d) In the case of any single family program loan, the eligibility of any applicant who wishes to acquire, or be added to the title to, the residential structure shall be finally verified before the agency grants any necessary approval of such acquisition or addition to title.
(e) Except as provided in subparagraph (a) and (c) of this section, once a final verification process is commenced, it shall be diligently pursued to completion.
(f) Generally an applicant's eligibility need only be finally verified once during the life of the loan provided however that in any case where there is reasonable cause to believe that an applicant's eligibility status has been misrepresented, the applicant's eligibility may be reverified.
1. New section filed 6-9-98 as an emergency; operative 8-1-98 (Register 98, No. 24). A Certificate of Compliance must be transmitted to OAL by 11-30-98 or emergency language will be repealed by operation of law on the following day.
2. Certificate of Compliance as to 6-9-98 order transmitted to OAL 9-21-98 and filed 10-28-98 (Register 98, No. 44).
3. New subsections (a) and (b), subsection relettering, amendment of newly designated subsections (c), (e) and (f) and NOTE filed 11-2-98; operative 12-2-98 (Register 98, No. 45).
Note: Authority cited: Sections 51050(e), 51050(s), 51067 and 51349, Health and Safety Code. Reference: 8 U.S.C. §§ 1601, 1621, 1625, 1641 and 1642; and Sections 51050-51070, 51100-51253 and 51325-51340, Health and Safety Code.
