1. (a) A household shall be determined to be unable to acquire property without financial assistance under the Program if:

   1. (1) the monthly housing cost associated with the property to be purchased would exceed thirty-five (35) percent of the household's income; and

   2. (2) the household's assets do not exceed the total of the following:

      1. (A) the amount necessary to pay the estimated closing cost and downpayment for the property to be purchased;
      2. (B) the amount necessary to pay six (6) months of the monthly housing costs associated with the unit to be purchased; and
      3. (C) five thousand dollars (5,000).
2. (b) For the purposes of the Program, “assets” means the value of a household's savings and any equity in stocks, bonds, real property, or other forms of capital investment. “Assets” does not include items reasonably necessary for the personal use of the household, such as personal effects, furniture, appliances, automobiles, real or personal property used in a business or undertaking which is a primary sources of livelihood for such household, and a mobilehome to be located on property for which financial assistance will be provided.

A household shall not be eligible under the Program unless it has been determined that such household will be unable to acquire the property without financial assistance from the Fund.

Note: Authority cited: Section 50406, Health and Safety Code. Reference: Sections 50775 and 50777, Health and Safety Code.

History

1. Amendment filed 11-13-80 as an emergency; effective upon filing (Register 80, No. 46). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 3-13-81.

2. Certificate of Compliance transmitted to OAL 3-13-81 and filed 4-14-81 (Register 81, No. 16).

3. Amendment filed 6-11-81 as an emergency; effective upon filing (Register 81, No. 25).

4. Order of Repeal of 6-11-81 emergency order filed 6-19-81 by OAL pursuant to Government Code Section 11349.6 (Register 81, No. 25).

5. Amendment filed 4-30-82; effective thirtieth day thereafter (Register 82, No. 18).