1. (a) Prior to disbursement of development loan proceeds:

   1. (1) the developer borrower shall be the sole owner of the development site or upon close of purchase escrow when CalHome funds are being used for site acquisition;
   2. (2) the developer borrower shall have a firm financing commitment(s) for all costs to complete the development;

   3. (3) the Department shall have approved a final construction budget that ensures that the estimated sales price of the homes to be constructed:

      1. (i) do not exceed the limits established in the NOFA; and
      2. (ii) can reasonably be expected to be affordable to eligible buyers; and
   4. (4) the developer borrower shall have met all other Department conditions for disbursement as stated in the Standard Agreement required by Section 7752(a).
2. (b) Consistent with the capacity requirements of Section 7717 and 7742, the developer borrower shall be required to develop the project without any co-developer.
3. (c) A home assisted with a development loan shall not be sold at a price that exceeds its appraised value.

Note: Authority cited: Sections 50406(n) and 50650.2, Health and Safety Code. Reference: Sections 50650.3(b), 50650.4 and 50650.7, Health and Safety Code.

History

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