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 land and improvements 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 8114 and determining actual investment pursuant to section 8123;
   2. (2) To assist with establishing reasonable costs for development cost categories pursuant to section 8114; and
   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: Sections 50406(n), 50884 and 50895, Health and Safety Code. Reference: Section 50880, 50881.5(f) and 50893.7(d), Health and Safety Code.

History

1. New section filed 12-14-90 as an emergency; operative 12-14-90 (Register 91, No. 11). A Certificate of Compliance must be transmitted to OAL by 4-15-91 or emergency language will be repealed by operation of law on the following day.

2. Repealed by operation of law on 4-16-91.

3. New section filed 7-19-91 as an emergency; operative 7-19-91 (Register 92, No. 16). A Certificate of Compliance must be transmitted to OAL 11-6-91 or emergency language will be repealed by operation of law on the following day.

4. New section refiled 11-15-91 as an emergency; operative 11-15-91 (Register 92, No. 16). A Certificate of Compliance must be transmitted to OAL 3-16-92 or emergency language will be repealed by operation of law on the following day.

5. Certificate of Compliance as to 11-15-91 order transmitted to OAL 12-12-91 and filed 1-13-92 (Register 92, No. 16).