Cal. Code Regs. Tit. 10, § 1620.22 - Property Owner Income
(1) The reasonable good faith determination of whether a property owner has a reasonable ability to pay the annual assessment shall be made and documented independently from any statement by a property owner regarding whether the property owner has the ability to pay the annual payment obligations under an assessment contract.
(2) This subdivision shall not be applicable in the case of emergency or immediate necessity under subdivision (e) of Financial Code section 22687.
(b) In determining a property owner's current or reasonably expected income, the following principles apply.
(1) The examples of the records that a program administrator may use to verify a property owner's income or assets in subdivision (b)(1) of Financial Code section 22687 are not exhaustive.
(2) A temporary source of income under subparagraph (b)(2)(A) of Financial Code section 22687 includes income that it reasonably may be concluded will not continue during the foreseeable future.
(3) The property owner's household income may only include the incomes of the persons identified in subdivision (a) of Financial Code section 22687. If other members of the property owner's household are paying rent or board to the property owner, this income shall be verified through a written rental agreement and reasonably reliable third-party records that demonstrate the property owner's receipt of such income for at least the prior six months. If a written rental agreement is unavailable, an agreement may be verified through the written statement of the individual renting or boarding from the property owner and evidence that the renter or boarder has resided in the property owner's household for at least the prior six months.
(4) Rental income for properties other than the property owner's household may be included in determining income provided that all mortgage principal and interest payments, insurance, property taxes, mortgage guaranty insurance, and other preexisting fees and assessments for the rental property are subtracted from gross rental receipts before such income is included in the property owner's total income.
(5) A program administrator shall not determine the income of a property owner based on predictive or estimation methodologies that are not specific to the income of the property owner, such as, but not limited to, methodologies that estimate income based on average incomes in the property owner's geographic location, or average wages paid by the property owner's employer.
(6) Nonliquid assets under subparagraph (b)(2)(B) of Financial Code section 22687 include assets, such as funds in retirement accounts, that would result in a financial penalty for a property owner if withdrawn or liquidated.
(7) Funds received from a reverse mortgage shall not constitute income.
Note: Authority cited: Section 22150, Financial Code. Reference: Sections 22686 and 22687, Financial Code.
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