23 CA ADC § 370.17


      23 CCR s 370.17

      Cal. Admin. Code tit. 23, s 370.17


      CALIFORNIA CODE OF REGULATIONS
      TITLE 23. WATERS
      DIVISION 2. DEPARTMENT OF WATER RESOURCES
      CHAPTER 1.6. RELOCATION ASSISTANCE PROGRAM
      ARTICLE 2. RELOCATION PAYMENTS
      This database is current through 05/26/06, Register 2006, No. 21. 

      s 370.17. Replacement Housing Payments to Owner-Occupant for 180 Days or 
      More Who Purchases a Replacement Dwelling.

      (a) General.

      (1) A displaced owner-occupant of a dwelling may receive additional 
      payments, the combined total of which may not exceed $15,000.00, for the 
      additional cost necessary:

      (A) To purchase replacement housing;

      (B) To compensate the owner for the loss of favorable financing on his 
      existing mortgage in the financing of replacement housing; and

      (C) To reimburse the owner for incidental expenses incident to the 
      purchase of replacement housing when such costs are incurred as specified 
      herein.

      (2) The owner-occupant is eligible for such payments when:

      (A) He has been in occupancy of the dwelling to be acquired as his primary 
      residence for at least 180 consecutive days immediately prior to and 
      including the date of initiation of negotiations for the parcel; and

      (B) The property was acquired from him by the state; and

      (C) He purchased and occupied a decent, safe and sanitary dwelling within 
      the time period specified in Section 370.16 (b).

      (b) Purchase Differential Payment.

      (1) Amount of Payment. The replacement housing payment is the amount, if 
      any, when added to the amount for which the Department acquired his 
      dwelling, equals the actual cost which the owner is required to pay for a 
      decent, safe, and sanitary dwelling, or the amount determined by the 
      Department as necessary to purchase a comparable replacement dwelling, 
      whichever is less. In the case of a prior owned dwelling, the actual cost 
      of the prior owned dwelling will be based on the historical cost incurred 
      at the time of its purchase. Any additional cost to bring the prior owned 
      dwelling up to minimum decent, safe and sanitary standards may be included 
      in the historical cost.

      (2) Determination of Amount Necessary to Purchase Comparable Replacement 
      Housing. The Department shall determine the amount necessary to purchase 
      comparable replacement housing by any reasonable method the Department 
      finds necessary.

      (c) Interest Differential Payment.

      (1) General.

      (A) Interest differential payments are provided to compensate a displaced 
      person for the increased interest costs he is required to pay for 
      financing a replacement dwelling and shall be allowed only when both of 
      the following conditions are met:

      1. The dwelling acquired by the Department was encumbered by a bona fide 
      mortgage which was a valid lien on such dwelling for not less than 180 
      days prior to the initiation of negotiations; and

      2. The mortgage on the replacement dwelling bears a higher effective rate 
      of interest than the stated mortgage interest rate on the acquired 
      dwelling.

      As used in this subsection the term "mortgage" shall include those liens 
      as are commonly given to secure advances on, or the unpaid purchase price 
      of, mobile homes or other vehicles, under the laws of the State of 
      California, together with the credit instruments, if any, secured thereby.

      (B) The interest differential payment will be based on and limited to the 
      lesser of the following amounts:

      1. The present worth of the right to receive the monthly difference in 
      mortgage payments on the existing mortgage using the old and new interest 
      rates; or

      2. The present worth or the right to receive the monthly difference in 
      mortgage payments on the new mortgage using the old stated and new 
      interest rates.

      (2) Payment Computation. The Department shall determine the amount of the 
      interest differential payment.

      (3) Interest Rate of Replacement Dwelling Mortgage. The interest rate of 
      the mortgage on the replacement dwelling to be used in the computation 
      shall not exceed the prevailing interest rate currently charged by 
      mortgage lending institution in the vicinity.

      (4) Discount Rate. The present worth shall be based on a discount rate 
      equal to the prevailing interest rate paid on savings deposits by 
      commercial banks in the general area in which the acquired dwelling is 
      located.

      (5) Points and Loan Fees.

      (A) To the amount of the increased payment shall be added the following:

      1. The amount actually paid, if any, as points by the eligible displaced 
      owner in the purchase of the replacement dwelling, not to exceed an amount 
      calculated by multiplying the prevailing point rate by the amount of the 
      eligible portion of the mortgage on the replacement dwelling, or the 
      probable replacement cost of the acquired dwelling as determined by the 
      Department whichever is less. A "point" is defined as 1% of the 
      outstanding mortgage balance.

      2. The amount actually paid, if any, as loan origination or service fees 
      by the eligible displaced owner in the purchase of the replacement 
      dwelling, not to exceed one percent of either the mortgage on the acquired 
      dwelling, or 1% of the probable replacement cost of the acquired dwelling 
      as determined by the Department, whichever is less.

      (6). Variable Rate Mortgages.

      (A) The interest rate of the mortgage on the acquired property shall be 
      deemed to be that stated in the mortgage except that in those mortgages 
      wherein the lender has the lawful right to make periodic adjustments in 
      the interest rate, the interest rate in effect at the time of acquisition 
      by the Department shall be used in the increased interest cost 
computation.

      (B) The interest rate of the mortgage on the replacement dwelling shall be 
      deemed to be the rate which will be applied to determine the first 
      periodic payment of principal and interest on said mortgage.

      (d) Incidental Expenses.

      (1) Amount of Payment. The incidental expenses payment is the amount 
      necessary to reimburse the homeowner for the actual costs in curred by him 
      incident to the purchase of the replacement dwelling, but not for prepaid 
      expenses. Such expenses shall be reasonable and legally required or 
      customary in the community. Such costs may include, but are not limited 
      to, the following items where actually paid by the displaced homeowner:

      (A) Legal, closing and related costs including title search, preparing 
      conveyance contracts, notary fees, surveys, preparing drawings or plates 
      and charges paid incident to recordation;

      (B) Lenders, Federal Housing Administration or Veterans Administration 
      appraisal fee;

      (C) Federal Housing Administration or Veterans Administration application 
      fee;

      (D) Certification of structural soundness when required by lender, Federal 
      Housing Administration or Veterans Administration;

      (E) Credit report;

      (F) Owner's title policy or abstract of title;

      (G) Escrow agent's fee;

      (H) State real estate transfer tax;

      (I) Sales or transfer taxes;

      (J) No fee, cost, charge or expense is reimbursable as an incidental 
      expense when it is determined to be a part of the debt service, or finance 
      charge under the Truth in Lending Act, Title I, Public Law 90-321, and 
      Regulation Z issued pursuant thereto by the Board of Governors of the 
      Federal Reserve System.

      (e) Owner Retention of Dwelling. Where an owner-occupant retains his 
      dwelling, the replacement housing payment shall be computed in accordance 
      with the appropriate paragraph below:

      (1) Dwelling is Decent, Safe and Sanitary. The payment, if any, shall be 
      the amount by which the costs to relocate the retained dwelling exceeds 
      the appraised value of the dwelling.

      The costs to relocate may include the reasonable costs of acquiring a new 
      site and other expenses incident to retaining, moving the dwelling and 
      restoring it to a condition comparable to that before the move.

      (2) Dwelling is Not Decent, Safe and Sanitary. The payment shall be 
      computed as shown above except that the costs to cure the decent, safe and 
      sanitary deficiencies shall be included in the costs to relocate.

      (3) Limitations. The payment computed under Paragraphs (1) or (2) of this 
      subsection may not exceed the amount which the owner would have obtained 
      under subsection (b) (1) of this Section or, if no comparables are 
      available on which to make such a determination, the cost of a new 
      dwelling adequate to accommodate the displaced person.


      Note: Authority cited: Section 7267.8, Government Code. Reference: Section 
      7268, Government Code.
      23 CA ADC s 370.17

      END OF DOCUMENT

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