1. (a) As a condition of funding, the department shall require an appraisal or market study, or both, where required to achieve the following objectives:

   1. (1) To establish a market value for the land to be purchased or leased as part of the project for purposes of evaluating the reasonableness of the purchase price or lease terms pursuant to section 8079 and determining sponsor equity pursuant to section 8084.
   2. (2) To assist with establishing reasonable costs for other development cost categories pursuant to section 8079.
   3. (3) To assess fiscal integrity.

2. (b) Any appraisal required by the department shall be prepared at the sponsor's expense by an individual who

   1. (1) has the knowledge and experience necessary to appraise income property competently;
   2. (2) is aware of, understands, and correctly employs those recognized methods and techniques that are necessary to produce a credible appraisal; and
   3. (3) in reporting the results of the appraisal, communicates each analysis, opinion and conclusion in a manner that is not misleading as to the true value and condition of the property.

3. (c) Any market study required by the department shall be prepared at the sponsor's expense by an individual who:

   1. (1) has the knowledge and experience necessary to conduct a market study for rental property competently;
   2. (2) is aware of, understands, and correctly employs those recognized methods and techniques that are necessary to produce a credible market study; and
   3. (3) in reporting the results of the market study, communicates each analysis, opinion and conclusion in a manner that is not misleading as to the true value and condition of the property.

Note: Authority cited: Section 50771.1, Health and Safety Code. Reference: Section 50771.1, Health and Safety Code.

History

1. New section filed 12-29-89 as an emergency; operative 12-29-89 (Register 90, No. 3). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 4-30-90.

2. New section refiled 4-26-90 as an emergency; operative 4-26-90 (Register 90, No. 23). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed by operation of law on 8-24-90.

3. New section refiled 8-27-90 as an emergency; operative 8-27-90 (Register 90, No. 42). A Certificate of Compliance must be transmitted to OAL by 12-26-90 or emergency language will be repealed by operation of law on the following day.

4. New section refiled 12-19-90 as an emergency pursuant to Health and Safety Code section 50771.3; operative 12-19-90 (Register 91, No. 4). A Certificate of Compliance must be transmitted to OAL by 4-18-91 or emergency language will be repealed by operation of law on the following day.

5. Certificate of Compliance as to 12-19-90 order transmitted to OAL 1-4-91; disapproved by OAL 2-4-91 (Register 91, No. 13).

6. New section refiled 2-20-91 as an emergency; operative 2-20-91 (Register 91, No. 13). A Certificate of Compliance must be transmitted to OAL by 6-17-91 or emergency language will be repealed by operation of law on the following day.

7. Certificate of Compliance as to 6-14-91 order including amendment of subsection (a) and new subsection (c) transmitted to OAL 5-15-91 and filed 6-14-91 (Register 91, No. 38).