Cal. Code Regs. Tit. 21, § 1480 - Priority 0: Sales to Former Owners

(a) Offer at Priority 0. A Single-Family Residence shall first be offered to its current Occupant(s) at Fair Market Value pursuant to this section.

(b) Eligibility Criteria to Receive a Sales Contract. To be eligible to receive a sales contract to purchase at Priority 0, an Occupant shall:

(1) have been the former owner of the Single-Family Residence; and

(2) have provided a written response that meets the criteria in both § 1478(d) and 1478(f).

(c) Determining Eligibility to Receive a Sales Contract. The Department will send to each Occupant who provided a written response that meets the criteria in both § 1478(d) and 1478(f) a request by written correspondence for documentation supporting and demonstrating the criteria in (b). To support and demonstrate the criteria in (b), an Occupant shall provide documentation demonstrating that they were a former owner of the Single-Family Residence. Caltrans shall also use its acquisition documents to determine eligibility.

(d) Time to Provide Documentation. An Occupant wanting to purchase at Priority 0 shall provide the documentation specified in (c) to the Department within the following time limits:

(1) If providing the documentation to the Department by mail, then it shall be postmarked no later than 60 calendar days after the date of the Department's request for the information.

(2) If providing the documentation to the Department by email, then it shall be sent no later than 60 calendar days after the date of the Department's request for the information.

(e) 30-Day Extensions. If the Department determines an Occupant's documentation is insufficient to demonstrate they meet the criteria in (b), then the Department shall provide written notice of the deficiency and provide an additional 30 calendar days for the Occupant to provide the missing documentation. The Department may provide two such 30 calendar day extensions but shall not extend the initial 60 calendar day deadline by more than 60 calendar days.

(f) Burden. An Occupant has the burden of demonstrating they meet the criteria in (b). Failure to provide adequate documentation will result in the Department finding an Occupant ineligible to receive a sales contract to purchase at Priority 0.

(g) Notice of Finding. The Department will notify an Occupant in writing of its finding of eligibility or ineligibility to receive a sales contract to purchase at Priority 0. A determination of eligibility to receive a sales contract does not entitle an Occupant to purchase a property at Priority 0.

(h) Occupants with Equal Priority. If the Department determines that more than one Occupant is eligible to receive a sales contract to purchase the same property at Priority 0, then the Department will give priority as follows:

(1) First to original signatories to the current written lease or rental agreement; and then

(2) To other signatories to the current written lease or rental agreement, with older signatures having priority over newer signatures; and then

(3) To all other Occupants based on length of occupancy, with longer occupancies having priority over newer occupancies; and then

(4) Based on the order in which the Department received written responses to its solicitation for interest pursuant to § 1478; and then

(5) To the occupant who offers the highest price for the property.

(i) Sales Contract. The Department will send a sales contract to the Occupant who is eligible to receive a sales contract and who has priority pursuant to (h). The sales contract shall be executed and returned to the Department within 30 calendar days of the date the Department sends the contract.

(j) Escrow. Upon contract execution, an Occupant will have 120 calendar days to close escrow. Upon written request, the Department will provide an additional 30 calendar days to close escrow.

(k) Closing Costs and Escrow Fees. The Department shall pay: one-half of the escrow fees; all seller notary fees; termite inspection; termite work; and documentary transfer tax.

(l) No Warranty on FMV Sale. Any Priority 0 sale at Fair Market Value is "as-is" and without warranty.

(m) Concurrent with Other Priorities. The processes described in (c), (d), and (e), shall occur concurrently with the processes described in §§ 1481(c), (d), and (e) and 1482 (b).

Notes

Cal. Code Regs. Tit. 21, § 1480

1. New section filed 7-26-2016; operative 7-26-2016 pursuant to Government Code section 11343.4(b)(3) (Register 2016, No. 31).
2. Repealer and new section filed 12-13-2021 as an emergency; operative 12-13-2021 (Register 2021, No. 51). Pursuant to Government Code Section 54237.10, this is a statutorily deemed emergency and the emergency language remains in effect until 12-14-2023. A Certificate of Compliance must be transmitted to OAL by 12-13-2023 or emergency language will be repealed by operation of law on the following day.
3. Pursuant to Government Code section 54239.5(e)(3), as added by Senate Bill 959 (Stats. 2022, Ch. 668), a Certificate of Compliance must be transmitted to OAL by 9-30-2024 or language of the emergency order of 12-13-2021 (Register 2021, No. 51) will be repealed by operation of law on the following day (Register 2023, No. 27).

Note: Authority cited: Section 54237, Government Code. Reference: Sections 54236 and 54237, Government Code.

1. New section filed 7-26-2016; operative 7/26/2016 pursuant to Government Code section 11343.4(b)(3) (Register 2016, No. 31).
2. Repealer and new section filed 12-13-2021 as an emergency; operative 12/13/2021 (Register 2021, No. 51). Pursuant to Government Code Section 54237.10, this is a statutorily deemed emergency and the emergency language remains in effect until 12-14-2023. A Certificate of Compliance must be transmitted to OAL by 12-13-2023 or emergency language will be repealed by operation of law on the following day.